Bitcoin drives record $2.4b weekly digital asset investment inflows

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Bitcoin was a pacesetter because the U.S. dominated inflows to crypto-based merchandise between Feb. 12 and Feb. 16, with 2024 YTD numbers hitting $5.2 billion.

Digital asset funding automobiles took in $2.4 billion weekly, setting a file for weekly flows and returning property underneath administration (AUM) to ranges final seen in December 2021 on the peak of crypto’s earlier bull cycle. Whole AUM rose to a 780-day excessive at $67 billion.

CoinShares information confirmed that Bitcoin (BTC) and the U.S. accounted for about 99% of the week’s inflows, signaling demand for spot crypto merchandise from issuers like BlackRock and Constancy. In underneath two months, the 2 Wall Avenue giants account for over $10 billion of the roughly $14 billion amassed by new spot Bitcoin ETF suppliers.

Bitcoin ETFs have clocked $5 billion in internet inflows since Jan. 11 and practically $2 billion in complete worth traded, whereas Grayscale’s GBTC has misplaced $7 billion.

Bitcoin ETF flows | Supply: CoinShares

Inflows into these spot BTC funds present traders are betting on increased costs, however some merchants are additionally hedging their bets and seeking to generate income from short-term value downturns. In line with the report, traders added $5.8 million to Bitcoin’s brief positions. 

Ethereum (ETH) posted the second-largest fund consumption at $21 million in inflows as traders and speculators await a call from the U.S. SEC on spot ETH ETFs. Punters on decentralized prediction venue Polymarket have locked $1.3 million in a wise contract titled “Ethereum ETF permitted by Might 31?”.

Punters guess on Ethereum ETF | Supply: Polymarkets

Profitable spot BTC ETF issuers have submitted bids for a similar product underpinned by defi’s main blockchain asset. Nevertheless, SEC chair Gary Gensler has hinted that Ethereum ETFs could not end up like their Bitcoin counterparts, as choices on these merchandise have been pushed again to Might.

Different Commissioners like Hester Peirce, often called “crypto mother”, have urged the securities regulator to keep away from one other debacle. 

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