Cryptocurrency Market Sees Inflows as Hopes for BTC ETF Approval Rise

The cryptocurrency market has experienced a surge in inflows as investors anticipate the approval of a spot Bitcoin Exchange Traded Fund (ETF). According to a report by CoinShares, total market products have gained $261 million, marking the sixth consecutive week of inflows. This brings the total inflows in the past six weeks to $767 million, surpassing the growth seen in July and representing the highest string of inflows since the decline of the bull run in December 2021.

Bitcoin Dominates Inflows

Last week, Bitcoin remained the dominant asset, attracting $229 million in inflows. Short-bitcoin also followed a similar trajectory with $4.5 million flowing in. The significant gains of BTC in recent weeks can be attributed to the expectation of a spot BTC ETF approval by the Securities and Exchange Commission (SEC). Analysts suggest that recent court victories and other developments indicate a potential approval could be on the horizon.

“Bitcoin inflows now stand at $842 million, likely buoyed by the increasing likelihood of a spot-based ETF in the US and weaker than expected macro data, bringing into question the efficacy of US monetary policy,” CoinShares wrote.

Altcoin Gains and Institutional Interest

On the altcoin front, Ethereum, Chainlink, and Solana recorded positive gains. Solana saw inflows of $11 million, while Chainlink notched gains of $2 million. Ethereum regained its position as the leading altcoin with $17.5 million inflows, the largest since August 2022. Ethereum, despite its poor performance in terms of institutional products, remains the asset with the highest growth potential due to its staking feature and high number of decentralized applications (dApps).

In terms of investor geography, the United States recorded the highest inflows with $157 million, reflecting the optimism surrounding the spot ETF approval. Europe also performed well, with Germany and Switzerland totaling $63 million and $36 million respectively. Canada saw inflows of $9 million as the country aims to clarify rules around stablecoins and the wider market. The high figure from the US comes following the approval of the spot ETF, leading investors to have more confidence in the SEC’s decision-making process.

Overall, the cryptocurrency market continues to attract significant inflows as investors anticipate the approval of a spot Bitcoin ETF. With Bitcoin as the dominant asset and altcoins like Ethereum gaining traction, the market is poised for further growth in the coming months.

Total
0
Shares
Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Article

Ark Invest Adjusts Portfolio, Buys Block Inc Shares and Sells Grayscale Bitcoin Trust Holdings

Next Article

A Legal Battle Over Frozen Cryptocurrency Funds

Related Posts