Institutional investors’ fondness for Bitcoin (BTC) has been on a rise for the past two weeks as the cryptocurrency market maintains its upward trend this year. CoinShares’ recent study reveals that Bitcoin’s investment products garnered a staggering $310 million in inflows over the past 14 days. This was despite lingering scepticism over the approval of a spot BTC ETF by the Securities and Exchange Commission (SEC).
Tracing the inflows and outflows of investment, Bitcoin is emerging victorious from a nine-week streak of successive outflows. This week’s inflows amounted to $123 million, whereas investments betting against Bitcoin saw a minor outflow of $0.9 million. This disparity extends Bitcoin’s bearish streak to the 10th week. The currency’s dominance was underscored by its 98% share in the total market flow for the last two weeks, a record it accomplished twice this year.
Investments in the Ethereum altcoin showed positive movements with inflows of $2.7 million, while blockchain equities also saw an inflow of $6.8 million, snapping a nine-week draught. Other altcoins like Ripple, Cardano, and Polygon also posted similar positive figures with Solana registering an inflow of $0.8 million.
James Butterfill, CoinShares Head of Market Research, highlighted Bitcoin’s attractiveness for investors. Observing an increase in trading activity, he noted that Bitcoin’s investment products flipped into net inflows — a shift from a net outflow position of US$171m two weeks prior.
A series of spot ETF applications triggered by BlackRock’s initial proposal are speculated to have driven Bitcoin’s recent market dominance growth. The price of the premier cryptocurrency jumped 25.2% since BlackRock’s application last month, with WisdomTree, Invesco, and Fidelity following suit.
Despite the SEC’s history of rejecting past spot BTC ETF applications, experts, including analysts at Bernstein, suggest that the regulatory body might be more inclined to greenlight a proposal led by mainstream Wall Street participants.
Consequently, Bitcoin has managed to reclaim its 50% market dominance for the first time in two years, bringing its current dominance rate to 51.23%. Considering the SEC’s potential approval of a regulated Bitcoin ETF over a Grayscale OTC product, the future appears promising. Bitcoin’s fear and greed index remain bullish, maintaining a rating of 64 in the greed zone as of the time of writing.
Source: Cryptonews
