Expectation of US Bitcoin ETF Approval Fuels $179 Million Inflow into Crypto Investments
Summary:
Cryptocurrency investment products have gained consistent inflows for four weeks due to anticipation of a spot Bitcoin ETF approval in the US. The latest report from CoinShares noted a $179 million influx into digital asset investment products. Although recent inflows are likely excited about the potential Bitcoin ETF launch, they are comparably lower than the initial enthusiasm witnessed after BlackRock's announcement in June. Bitcoin and Solana saw the largest inflows, while Ether registered the only outflows among altcoins last week. Late optimism for a potential Bitcoin ETF has triggered a 14% boost in Bitcoin's value.
Over the past month, cryptocurrency investment offerings have been drawing funds at a steady pace, owing to the potential approval of a spot Bitcoin ETF in the US. This information comes from the latest fund flows report by asset management firm CoinShares, released on October 23. The report details an influx of $179 million into digital asset investment products in the week ending October 20, expanding the assets under management for this sector to a hefty $33 billion. Bitcoin investment products accounted for 84% of last week's newcomers, translating to $55.3 million. This brings the year-to-date inflow of Bitcoin products to $315 million.
James Butterfill, CoinShares' Head of Research acknowledged that the recent week's influx wasn't quite on par with those seen earlier in the year when BlackRock initially filed for a Bitcoin ETF. Butterfill highlighted that despite recent investment enthusiasm coinciding with anticipation of US launch of a Bitcoin ETF, the figures trail the initial influx post-BlackRock's announcement in June. The inflows experienced in June, amounting to $807 million over four weeks nearly tripled the current figures, suggesting investors might be navigating with extra caution this time around.
Data for the week ending October 20 puts Bitcoin and Solana in the spotlight, attracting the most funds. Solana's offerings claimed the runner's up spot in last week's influx, and outperformed all other altcoins, with $15.5 million in net additions. Ether products, on the other hand, witnessed exit of funds to the tune of $7.4 million, the sole altcoin to experience an outflow in the past week.
Late last week, talks of a potential Bitcoin ETF received a boost, reportedly prompted by encouraging indications that BlackRock's ETF, and Grayscale's spot Bitcoin ETF filing, were on the brink of obtaining the green light. This was after a US appellate court commanded the Securities and Exchange Commission to revisit Grayscale's application. The ripple effects of these developments included a 14% spike in Bitcoin's value in the last 24 hours, and a record-maxing $34,000 price point, a high not witnessed since May 2022. The surge in price resulted in Bitcoin short liquidations exceeding $193 million in the last 24 hours, claims data from CoinGlass.
Published At
10/24/2023 1:38:39 AM
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