US Bitcoin ETF Anticipation Spurs Inflows into Digital-Asset Products
Anticipation of an eventual US spot Bitcoin exchange-traded fund has helped to spur inflows into digital-asset investment products for a ninth consecutive week, the largest run since the crypto bull market in late 2021.
Inflows into Digital-Asset Investment Products
Last week, investment products such as trusts and exchange-traded products saw inflows of $346 million. CoinShares reported that Canada and Germany contributed to 87% of the total, with only $30 million coming from the US. The low participation from the US is a sign of continued struggle to gain traction in the country.
Push for Spot Bitcoin ETFs
Since early October, the crypto market has surged as traditional asset managers like BlackRock prepared for spot Bitcoin ETFs. The potential for spot Bitcoin ETFs to bring in many more investors into the asset has sparked excitement, but the US Securities and Exchange Commission must approve any ETF applications.
Rising Total Assets
“The combination of price rises and inflows have now pushed up total assets under management to $45.3 billion, the highest in over one and half years,” the report from CoinShares stated. This reflects the significant growth and interest in digital-asset investment products.
Bitcoin and Ether Products
Bitcoin products raked in $312 million last week, pushing inflows to over $1.5 billion since the start of the year. Ether products saw $34 million in inflows last week, almost negating outflows for the entire year of 2023.
Implications for the Market
The anticipation of a US spot Bitcoin ETF is clearly having a significant impact on the digital-asset market, with sustained inflows into investment products and rising total assets under management. As traditional asset managers prepare for spot Bitcoin ETFs, the potential for increased investor participation and interest in digital-assets is becoming increasingly evident.
This surge in inflows into digital-asset investment products is a positive sign for the market and reflects the growing interest in cryptocurrencies as a potential investment opportunity. With the anticipation of US spot Bitcoin ETFs driving this trend, it will be interesting to see how the market continues to evolve in the coming months.
I have been featured in numerous publications, both online and offline, and am a regular speaker at industry events. I am also the founder of Crypto University, an online educational platform that helps people learn about cryptocurrencies and blockchain technology. In addition to my writing and teaching career, I am also an active investor in the cryptocurrency space. I have made investments in some of the leading projects in the space, and my portfolio has outperformed the market by a wide margin