Bitcoin Dominates as Crypto Funds Attract $1.44 Billion in Fresh Capital, Rally To Begin?
July 16 2024 - 3:00AM
NEWSBTC
Following Bitcoin’s gradual rebound seen last week, the global
crypto investment products also appear to have witnessed a notable
influx of funds, with a substantial $1.44 billion pouring in over
the same period. According to CoinShares, a leading crypto asset
management firm, this surge has pushed the year-to-date total to
top roughly $17.8 billion, highlighting a growing confidence among
investors despite recent market downturns. Related Reading:
Institutions Grab Over $5 Billion Bitcoin in a Week: Are They
Predicting a Mega Rally? Surge In Crypto Fund Inflows According to
the insight shared by CoinShares in its latest report, last week’s
activity marked one of the largest net inflows recorded,
significantly outpacing the $10.6 billion accumulated during the
entire bull run of 2021. This significant increase can be largely
attributed to investors taking advantage of recent dips in the
prices of many different cryptocurrencies. Bitcoin-centric funds
dominated this movement, bringing in about $1.35 billion of that
total amount. This indicates investors’ robust appetite for the
leading cryptocurrency, which continues to dominate the market
despite periodic volatility. Conversely, products betting against
Bitcoin (short-BTC Products) saw a reversal in fortune, registering
net outflows of $8.6 million—the most significant outflow since
April. The shift in holdings indicates a change of heart, which
could be due to more favorable market conditions, or it may simply
involve strategic portfolio changes for large holders. James
Butterfill, head of research at CoinShares, particularly noted: We
believe price weakness due to the German Government bitcoin sales
and a turnaround in sentiment due to lower than expect CPI in the
US prompted investor to add to positions. While the inflow rise was
global, US-based funds were by far the largest receiver at $1.3
billion. However, there were also considerable inflows in other
parts of the world. For instance, Switzerland saw $36 million, and
Hong Kong and Canada collectively added more than $137 million,
indicating a universal interest in cryptocurrency investment.
Interestingly, Ethereum-based investment products also enjoyed a
significant boost, with a $72 million increase in inflows.
Butterfill disclosed that this spike is likely “in anticipation of
the imminent approval of the spot-based exchange-traded fund (ETF)
in the US.” Gradual Recovery: Bitcoin And Ethereum Market
Performance So far, the inflows seen in the crypto market last week
appear to be now reflected in Bitcoin and Ethereum’s price, with
both assets now seeing noticeable rebounds following their recent
correction, which made BTC fall as low as $53,000 levels and
Ethereum dropping below $2,900. Related Reading: JPMorgan Says
Crypto Liquidations Will End And Bitcoin Bull Market Will Begin,
Here’s When Over the past 24 hours alone, Bitcoin has seen quite
the surge, increasing by 6.1% in value to reclaim the $63,000 mark.
At the time of writing, the asset currently trades at $63,764,
still down roughly 13.9% from its March peak above $73,000.
Ethereum also appears to be mirroring BTC’s price performance. The
second largest crypto by market cap is also up 6.4% in the past 24
hours to stand at a current trading price of $3,396. Featured image
created with DALL-E, Chart from TradingView
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