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Crypto investment products have recorded four weeks of inflows, as the market eagerly awaits the possible approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States.
Asset management firm CoinShares’ Oct. 23 fund flows report revealed $179 million was added to digital asset investment products in the week ending Oct. 20, which has swelled the space’s assets under management to $33 billion.
Of the past week’s inflows, $55.3 million or 84% went to Bitcoin investment products which has brought year-to-date Bitcoin product inflows to $315 million, it added.
It seems that the anticipation of a spot #Bitcoin ETF has prompted further inflows for the 4th consecutive week. Here is our analysis with @Jbutterfill.
Week 43 inflows: US$66m
Inflows are relatively low in comparison to June’s @BlackRock announcements, suggesting more… pic.twitter.com/6AkDGQJVOh
— CoinShares (@CoinSharesCo) October 23, 2023
CoinShares Head of Research James Butterfill however noted that the recent week’s inflows still haven’t reached the levels seen earlier this year when BlackRock first filed for a spot Bitcoin ETF.
“While the most recent inflows are likely linked to excitement over a spot Bitcoin ETF launch in the U.S., they are relatively low in comparison to the initial inflows following BlackRock’s announcement in June.”
Butterfill added thaJune’s four-week inflow run saw $807 million enter the sector and the lower inflows recently “are indicative of investors adopting a more cautious approach this time.”
Meanwhile, Solana (SOL) products caught the second-largest share of inflows last week and the largest of all altcoins, netting $15.5 million. Ether (ETH) products saw outflows of $7.4 million — the only altcoin to suffer outflows last week.
Related: Bitcoin ETF to trigger massive demand from institutions, EY says
More recently, interest in a spot Bitcoin ETF surged late on Oct. 23 amid “positive signs” that BlackRock’s ETF was a step closer to approval and a U.S. Appellate Court issued a mandate to the Securities and Exchange Commission to review Grayscale’s spot Bitcoin ETF filing.
The moves sparked a Bitcoin rally which saw it gain 14% over the past 24 hours and briefly hit $34,000 for the first time since May 2022.
The price jump also saw over $193 million in Bitcoin short liquidations in the past 24 hours, according to CoinGlass data.
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By: Cointelegraph By Jesse Coghlan
cointelegraph.com