Overview
Crypto investment products have seen a surge in inflows for the past four weeks, with investors eagerly awaiting the possible approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States. This influx of funds has boosted the assets under management in the digital asset space to $33 billion.
Bitcoin Dominates Inflows
Out of the total inflows in the past week, $55.3 million, or 84%, went into Bitcoin investment products. This brings the year-to-date Bitcoin product inflows to $315 million. However, it is important to note that these recent inflows are still lower compared to the levels seen earlier this year when BlackRock first announced its spot Bitcoin ETF filing.
Caution Among Investors
While the recent inflows are likely driven by excitement over a potential spot Bitcoin ETF launch in the US, they are relatively low compared to the initial inflows following BlackRock's announcement. CoinShares' Head of Research, James Butterfill, suggests that investors are adopting a more cautious approach this time, as evidenced by the lower inflows.
Altcoin Inflows and Outflows
Solana (SOL) products attracted the second-largest share of inflows last week, netting $15.5 million. On the other hand, Ether (ETH) products experienced outflows of $7.4 million, making it the only altcoin to suffer outflows.
Bitcoin ETF Speculation
Interest in a spot Bitcoin ETF surged recently as positive signs emerged regarding the approval of BlackRock's ETF. Furthermore, a US Appellate Court mandated the Securities and Exchange Commission to review Grayscale's spot Bitcoin ETF filing. These developments sparked a Bitcoin rally, with the cryptocurrency gaining 14% in the past 24 hours and briefly reaching $34,000 for the first time since May 2022.
Bitcoin Short Liquidations
The price jump in Bitcoin also resulted in over $193 million worth of short liquidations in the past 24 hours, according to CoinGlass data.
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