CoinShares reported that digital asset investment products and exchange-traded products (ETPs) experienced significant inflows of $151 million in the first week of 2024. Notably, this brings the total inflows since the Grayscale vs. SEC lawsuit to an impressive $2.3 billion.
The data indicates a bullish trend in the crypto ecosystem, especially as the approval of the first spot Bitcoin exchange-traded fund (ETF) in the United States looms. U.S.-based exchanges played a major role, contributing 55% of the total investment flow during the past week.
Bitcoin (BTC) took the lead in inflows, contributing $113 million, while Ether (ETH) followed with $29.6 million. Other notable inflows were observed in altcoins like Cardano (ADA) at $3.7 million, Avalanche (AVAX) at $2 million, and Litecoin (LTC) at $1.4 million.
A positive sign for Bitcoin emerged with outflows from Bitcoin short positions, totaling over $1 million in the past week. Contrary to earlier predictions of a “buy the rumor, sell the news” scenario surrounding the potential BTC ETF approval, the data indicates significant outflows from Bitcoin short ETPs over the past several weeks. Grayscale’s Bitcoin Trust (GBTC) saw substantial trading activity, reaching nearly half a billion on January 8, surpassing more than 99% of the 3,000 current ETFs in the market.
On the same day, Bitcoin achieved another yearly high, surpassing $46,000 and currently trading at $46,865. Exchange-traded products (ETPs) are highlighted as a cost-efficient gateway for investors looking to engage in crypto investments within a regulated framework. These financial instruments, traded on regulated stock exchanges, enable investors to gain exposure to the price movements of underlying crypto assets without owning the assets themselves.
As 2024 begins, the crypto community is experiencing a bullish start marked by key milestones, including the potential approval of the first spot Bitcoin ETF in the U.S. in the second week of January and the scheduled Bitcoin halving in April. The positive net flow into various crypto ETPs and the outflow from Bitcoin ETPs, as indicated by recent weekly investment flow data, further contribute to the optimistic outlook for the crypto market in the new year.
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