In light of the recent surge in Bitcoin ETF applications, the cryptocurrency investment sector has experienced its largest weekly inflows since July 2022, totaling a staggering $199 million. This sudden reversal comes after nine consecutive weeks of outflows, showing a renewed interest in the crypto market.
The data provided by CoinShares demonstrates that Bitcoin (BTC) attracted the majority of these inflows, receiving a significant $187 million or 94% of the total inflows. This renewed interest in cryptocurrencies is likely due to the involvement of traditional financial giants such as BlackRock, Fidelity, and others. CoinShares also revealed that ETP trading volumes were 170% of the average this year, totaling $2.5 billion for the week. Following these trends, the total assets under management (AuM) have now reached the highest levels since before the collapse of 3 Arrows Capital, currently standing at $37 billion.
Despite Bitcoin’s dominance in attracting investments, it is important to note that the positive sentiment surrounding cryptocurrencies did not have a considerable impact on altcoins. Ethereum, for example, experienced inflows of only $7.8 million, a mere 0.1% of the total value of assets compared to Bitcoins’ 0.7%. This suggests that, for now, Bitcoin reigns supreme as the cryptocurrency of choice for institutional investors, resulting in its overall market dominance reaching 50%.
The minimal impact on altcoins could be observed through the small inflows of $0.24 million into XRP and $0.17 million into Solana. However, this improved sentiment did entice some investors to venture into multi-asset investment exchange-traded products (ETPs) with $8 million in inflows recorded last week.
With the filings for spot Bitcoin ETFs gaining steam, ProShares Bitcoin futures ETF (BITO) also witnessed strong inflows recently. The total asset value for BITO has now surpassed the $1 billion mark.
While the current market conditions seem optimistic for Bitcoin, it is crucial to consider market uncertainties when venturing into the crypto investment space.Individual investors should conduct thorough market research before delving into cryptocurrencies, as the opinions expressed by industry experts are subjective and subject to changing market circumstances. Both the author and publication disclaim any responsibility for personal financial loss incurred due to misguided investments.
Source: Coingape
