Digital asset investment products experienced substantial inflows amounting to $1.1 billion in the week ending February 10 2024, bringing year-to-date inflows to $2.7 billion, a new analysis by European digital asset management firm, CoinShares, says.
These refer to institutional investment products from across the world, notably including cryptocurrency exchange-traded funds (ETFs), and cryptocurrency futures and options.
Alongside recent price increases, total assets under management (AUM) for institutionals have reached the highest level since early 2022, standing at $59 billion.
According to CoinShares, the spotlight remained on the newly issued spot-based Bitcoin ETFs in the United States, which witnessed a net $1.1 billion inflow last week, bringing inflows since the January 11 2024 launch to $2.8 billion.
“The outflows from incumbents have slowed significantly, but the potential sale of the Genesis holdings of $1.6bn could prompt further outflows in the coming months.”
Bitcoin, which crossed $50,000 on February 12 2024, reaching its highest level in over two years, accounted for nearly 98% of the inflows, while the price appreciation also boosted sentiment for Ethereum and Cardano, which saw inflows of $16 million and $6 million respectively. Minor inflows were observed in Avalanche ($0.5 million), Polygon ($0.4 million), and Tron ($0.4 million).
Significant cash inflows have entered the cryptocurrency space following the approval of the new spot Bitcoin (BTC) exchange-traded funds (ETFs).
The debut of spot Bitcoin ETFs in the United States (ETFs were already present in 8 other countries including Canada, Brazil, Switzerland, and Germany) was anticipated to create unprecedented opportunities for both institutional and retail investors, providing a more accessible and regulated avenue to participate in the expanding Bitcoin market.
Industry analysts forecast that the approval of these ETFs will act as a catalyst, prompting a significant influx of institutional capital into Bitcoin. This could have the potential to drive BTC’s value to new all-time highs and further establish its standing as a legitimate asset class.
According to a different analysis, the ETFs are indeed driving much of the price action witnessed over the last week, and, as reported by BitKE, have accumulated 1% of all Bitcoin.
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