In summary
- Spot Bitcoin ETFs attracted more than $1 billion in net inflows in the past week, the largest inflow since July.
- BlackRock’s Ethereum ETF (ETHA) led with an inflow of $94.9 million, followed by Fidelity’s Ethereum ETF (FETH) with $64.9 million.
- Avinash Shekhar, CEO of Pi42, noted that this increase reflects a strong resurgence of investor confidence in cryptocurrencies.
Spot Bitcoin ETFs have attracted more than $1 billion in net inflows in the past week, the largest inflow since July. One expert said it is evidence that institutional investors have become increasingly receptive to cryptocurrencies.
This wave of investment comes as the price of Bitcoin remains around the $64,000 mark, despite a slight drop in early Monday trading.
BlackRock’s Ethereum ETF (ETHA) led with an inflow of $94.9 million, followed by Fidelity’s Ethereum ETF (FETH) with $64.9 million. This positive move came despite a $127 million outflow from the Grayscale ETF (ETHE), suggesting a reallocation of investor capital into newer products, according to data from SoSo Value.
Source: CoinShares
The robust inflows into Bitcoin ETFs have not gone unnoticed by industry experts. Avinash Shekhar, co-founder and CEO of Pi42, an Indian Cryptocurrency derivatives platform, told Decrypt that the increase in net inflows to spot Bitcoin ETFs reflects a strong resurgence in investor confidence, especially after the cut. of the Federal Reserve’s interest rates.
Shekhar also noted renewed interest in Ethereum ETFs, which recorded their second-best week since their launch.
“The trends we are seeing indicate that the market is increasingly receptive to digital assets, suggesting promising opportunities for both Bitcoin and Ethereum in the future,” he said.
The influx of capital into Bitcoin-based financial products apparently indicates growing confidence in the cryptocurrency market amid macroeconomic developments, especially in Japan, which plans to review its cryptocurrency regulation, which could lead to a tax reduction on digital assets. and potentially facilitate the launch of domestic funds that invest in tokens, according to a Bloomberg report.
On Monday morning, Bitcoin (BTC) price was trading at $63,880, down about 2.8% from previous levels. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, also saw a slight decline, trading at $2,630, following a 0.7% decline, according to data from CoinGecko.
Data from cryptocurrency asset manager CoinShares further supports this bullish sentiment. The firm reported that digital asset investment products saw a third consecutive week of fund inflows totaling $1.2 billion. This trend is attributed to expectations of accommodative monetary policy in the US and positive price momentum, with a 6.2% increase in total assets under management last week.
Interestingly, while Bitcoin dominated inflows, Ethereum also broke its 5-week losing streak with inflows of $87 million, marking its first significant inflow since early August. Altcoins experienced mixed reactions, with Litecoin (LTC) and (XRP) receiving inflows of $2 million and $0.8 million respectively, while BNB and Stacks (STX) faced outflows of $1.2 million and $0.9 million respectively.
Meanwhile, data from CryptoQuant indicates that profitable Bitcoin supply has remained high, historically translating into an uptrend in the market. Typically, Bitcoin supply in profit remains above 80% during bull cycles.
While there have been brief moments where it has dipped below 80%, these dips often present buying opportunities. Recent summer swings briefly pushed profit supply below this threshold several times, but investors used these instances as buying opportunities, supporting the bull cycle narrative, CryptoQuant analysts said.
Edited by Stacy Elliott.
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