Bitcoin (BTC) institutional investment vehicles have attracted over $1 billion in new inflows in less than two months, signaling renewed interest in cryptocurrencies.
Crypto Institutional Product AUM Up 99% Year-to-Date
Bitcoin, Ether (ETH), and other major altcoins are experiencing price gains as anticipation grows around the potential approval of the United States' first spot exchange-traded fund (ETF).
Since November 2022, the total crypto market cap has increased by $600 billion, according to data from TradingView.
However, the past two months have seen a significant increase in funds being invested in crypto products, according to CoinShares.
"Digital asset investment products saw inflows totaling $293 million last week, bringing the seven-week run of inflows past the $1 billion mark. Year-to-date inflows now stand at $1.14 billion, making it the third-highest yearly inflows on record," CoinShares summarized.
One notable statistic that highlights the resurgence of crypto in 2023 is the assets under management (AUM) for crypto exchange-traded products (ETPs).
Since the beginning of the year, AUM has nearly doubled, with a 10% increase in just the past week.
"At $44.3 billion, total AUM is now the highest since the major crypto fund failures in May 2022," CoinShares noted.
The report also revealed that investors looking to go long on BTC accounted for the majority of the volume.
"Bitcoin saw inflows totaling $240 million last week, bringing year-to-date inflows to $1.08 billion. On the other hand, short-bitcoin products saw outflows of $7 million, indicating continued positive sentiment," the report stated.
"This Is What Adoption Looks Like"
The renewed interest in cryptocurrencies has prompted on-chain analytics firm Glassnode to reassess Bitcoin supply dynamics.
With the next block subsidy halving just five months away, the amount of BTC being stored away is now outpacing the amount being mined by 2.4 times, according to Glassnode's weekly newsletter, "The Week On-Chain."
"The fourth halving event is fast approaching and represents an important fundamental, technical, and philosophical milestone for Bitcoin. For investors, it is also an area of intrigue given the impressive return profile in prior cycles," Glassnode commented.
One of the accompanying charts highlighted BTC supply storage by long-term holders (LTHs) — entities that have held coins for 155 days or more.
Philip Swift, creator of statistics platform Look Into Bitcoin, pointed out the increasing number of wallet entities, both large and small, as evidence of adoption.
"This is what adoption looks like," he told subscribers on the day.
