Investing.com | Editor Nikhilesh Pawar
Published Nov 14, 2023 03:54
NEW YORK – The cryptocurrency market is witnessing a significant influx of institutional funds, with Bitcoin and other major cryptocurrencies attracting over $1 billion in less than two months. This surge in investment is largely driven by the anticipation of the United States’ first spot exchange-traded fund (ETF) for cryptocurrencies. Since November 2022, the total market capitalization of cryptocurrencies has ballooned by $600 billion.
In the past week, the crypto market saw substantial inflows with $293 million pouring into crypto investment products. This contributed to a seven-week cumulative total exceeding $1 billion. Assets under management (AUM) for crypto exchange-traded products (ETPs) have nearly doubled since the beginning of 2023, reaching a high of $44.3 billion, a figure not seen since the downturn following fund collapses in May 2022.
Bitcoin has been the primary beneficiary of these inflows, with $240 million invested last week alone. The data indicates a strong investor sentiment towards holding long Bitcoin positions. In contrast, short-Bitcoin products experienced outflows amounting to $7 million, suggesting that long-term investors are currently dominating the volume.
Bitcoin supply dynamics reveal that stored Bitcoin is now outpacing mined Bitcoin by a factor of 2.4 times. This trend comes ahead of the next block subsidy halving expected in five months, an event historically associated with price increases. The growing number of wallet entities tracked by Look Into Bitcoin further suggests an increasing adoption rate for the cryptocurrency.
Year-to-date inflows into crypto investment products have hit $1.08 billion, marking the third-highest yearly inflow on record. Such robust investment activity reflects solidifying confidence in the future potential of Bitcoin and other digital assets among institutional investors and market participants alike.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Written By: Investing.com
