- SEC’s approval of spot Bitcoin ETFs leads to $1.1 billion institutional investment in crypto.
- Bitcoin dominates inflows, with altcoins like ETH and ADA also seeing significant investment.
In a remarkable turn of events, the digital assets manager CoinShares has reported a significant surge in institutional investments into cryptocurrency products.
This uptick comes in the aftermath of the U.S. Securities and Exchange Commission (SEC) giving the green light to spot Bitcoin exchange-traded funds (ETFs), a move that has evidently galvanized the crypto investment landscape.
Record-Breaking Inflows
According to CoinShares’ latest Digital Asset Fund Flows report, an astonishing $1.1 billion was injected into crypto investment products in just one week, showing a clear upward trajectory in interest and investment. This infusion has pushed the year-to-date inflows to an impressive $2.7 billion.
The cumulative effect of these investments, coupled with recent price appreciations, has escalated the total assets under management (AuM) to a peak not seen since early 2022, standing at $59 billion.
Bitcoin ETFs Take the Lead
The report highlights a pronounced concentration of these inflows towards Bitcoin ETFs, which have amassed almost $3 billion in the last month alone. This substantial inflow has not only bolstered Bitcoin’s price but also positively influenced the market sentiment towards other cryptocurrencies like Ethereum (ETH) and Cardano (ADA).
Both of these altcoins experienced significant inflows, outpacing the rest of the altcoin market in investment reception. For a deeper dive into these advancements, a detailed explanation is available in this Youtube video, which can be watched here.
Geographical Focus and Future Outlook
The geographical focus of these investments has been predominantly on the United States, specifically on the newly issued spot-based Bitcoin ETFs. These ETFs alone accounted for $1.1 billion in inflows last week, bringing the total since their launch on January 11th to $2.8 billion.
Although outflows from incumbent investments have decelerated, there’s a looming concern over the potential sale of Genesis holdings, valued at $1.6 billion, which could instigate further outflows in the forthcoming months.
Bitcoin continued to command the majority of the inflows, capturing 98% of the total last week, which amounted to $1.09 billion. Other cryptocurrencies like Ethereum, Cardano, Avalanche (AVAX), Polygon (MATIC), and Tron (TRX) also saw positive inflows, albeit to a lesser extent, highlighting the diversified interest across the crypto spectrum.