As a seasoned crypto investor with a decade of experience under my belt, I must say that the recent inflows into digital asset investment products are a promising sign for the future of the market. With institutional giants like BlackRock and Fidelity joining the fray, it’s clear that crypto is moving towards mainstream adoption. The fact that Bitcoin and Ethereum products lead the inflows is particularly encouraging, as these two assets have proven themselves to be resilient and valuable in the long run.
Approximately $1.2 billion was poured into digital asset investment products worldwide last week, marking the third consecutive week of such investments. As reported by CoinShares, this figure encompasses funds managed by prominent global asset management companies such as BlackRock Inc (NYSE: BLK), Bitwise, Fidelity Investments, Grayscale Investments, ProShares, and 21Shares. It’s worth mentioning that U.S. Bitcoin spot ETFs contributed $1.1 million to the overall inflow.
In a similar vein, Swiss cryptocurrency investment products experienced inflows totaling $84 million. Regrettably, German and Brazilian funds experienced outflows amounting to $21 million and $3 million, respectively.
Bitcoin Products Lead Inflows with $1 Billion
In addition to marking three successive weeks of inflows, this latest trend represents the greatest increase in positive inflows over the past ten weeks. James Butterfill, Head of Research at CoinShares, pointed out that the surge was fueled by “ongoing anticipation of accommodative monetary policy in the U.S., along with favorable price trends.” As a result, assets under management experienced a 6.2% increase last week.
Furthermore, the United States Securities and Exchange Commission (SEC) approved trading options for BlackRock’s spot Bitcoin ETF IBIT this past week. This may have contributed to the positive sentiment that the digital asset investment product recorded. Conversely, trading volumes for most of these offerings did not improve. Instead, they plummeted 3.1% week-over-week.
According to data from CoinShares, the majority of new investments, approximately $1 billion worldwide, were poured into Bitcoin-focused investment vehicles last week. Conversely, products that allow for shorting Bitcoin attracted about $8.8 million in investments during the same period. This pattern aligns with the timeframe when Bitcoin’s price experienced a 3.5% increase over the previous seven days.
Currently, Bitcoin (BTC) is being traded at approximately $63,456.02, representing a 3.12% decrease over the past 24 hours. Its market capitalization stands at around $1.26 trillion, with a 24-hour trading volume of about $28.34 billion.
Ethereum Investment Products Registers Inflows as Price Drops
This past week, there was a shift towards positive feelings towards Ethereum-based investment products. For the previous five weeks, they had been experiencing negative investment flows. On September 23, a significant amount of money, over $79 million, flowed out of Ethereum ETFs. On Monday, the Grayscale Ethereum ETF (ETHE) saw the largest outflow at $80.6 million.
Conversely, Ethereum Watched by Bitwise (ETHW) received approximately $1.3 million, whereas all other spot Ethereum-based ETF products experienced no inflows.
There’s been talk that interest in the world’s second-biggest investment class might be decreasing, but surprisingly, it saw a surge last week, with international funds pouring in $87 million. Interestingly, almost all of these new investments, about $85 million, went into U.S.-based Ethereum ETFs. This is the largest weekly inflow these Ethereum ETFs have seen since early August.
Currently, Ethereum’s price has shown a robust rebound, increasing by over 15% in just one week. It peaked at a support level of $2,700, but subsequently experienced some volatility that led to a substantial decrease in market worth. As we speak, the digital currency is being traded at $2,600.34, representing a 1.57% decline over the last day and a 1.94% drop over the past week.
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2024-09-30 15:51