Crypto Investment Products Garner Four Consecutive Weeks of Inflows as the Market Anticipates US Spot Bitcoin ETF Approval
In recent developments, the crypto investment market has experienced four consecutive weeks of inflows, driven by the high anticipation surrounding the possible approval of a spot Bitcoin exchange-traded fund (ETF) in the United States.
According to the latest fund flows report from asset management firm CoinShares, $179 million flowed into digital asset investment products during the week ending on October 20. This influx has significantly bolstered the total assets under management within the crypto investment space, which now stands at a substantial $33 billion.
Of the inflows observed in the past week, $55.3 million, constituting a notable 84%, found its way into Bitcoin investment products. This surge brings the year-to-date Bitcoin product inflows to an impressive $315 million.
James Butterfill, the Head of Research at CoinShares, commented on the recent inflows. He pointed out that while they can be attributed to the excitement surrounding a potential spot Bitcoin ETF launch in the United States, they still fall short of the levels witnessed earlier this year when BlackRock initially filed for a spot Bitcoin ETF.
In June, a four-week inflow spree saw an impressive $807 million entering the crypto investment sector. The lower inflows observed recently indicate that investors are exercising a more cautious approach this time around.
Additionally, last week, Solana products attracted the second-largest share of inflows, with the most substantial portion among all altcoins, amassing $15.5 million.
On the flip side, Ether products experienced outflows of $7.4 million, making it the only altcoin to record outflows in the past week.
Notably, interest in a spot Bitcoin ETF surged on October 23 as there were “positive signs” suggesting that BlackRock’s ETF was moving closer to approval. Furthermore, a U.S. Appellate Court mandated the Securities and Exchange Commission to review Grayscale’s spot Bitcoin ETF filing, further fueling the excitement.
These developments triggered a significant rally in Bitcoin’s price, resulting in a 14% gain over the past 24 hours and briefly surpassing the $34,000 mark for the first time since May 2022.
The surge in Bitcoin’s price also led to over $193 million in Bitcoin short liquidations within the past 24 hours, according to data from CoinGlass.