Investment products for cryptocurrency saw inflows that almost exceeded $600 million, indicating traders’ increasing interest in altcoins and Bitcoin.
Institutional investors have poured $598 million into cryptocurrency investment products during the last seven days.
This is the fourth week in a row that cryptocurrency exchange-traded products (ETPs) have seen inflows.
“Total assets under management (AuM) reached its highest point since December 2021 earlier this week, at US$68.3 billion, though it is still far short of the US$87 billion all-time high recorded in November 2021.”
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The data comes after significant purchases made during a market rebound propelled by spot Bitcoin exchange-traded funds (ETF).
Before outflows temporarily halted at the end of last week, institutions placed close to $598 million into cryptocurrency products offered by BlackRock, ARK Invest, Grayscale, Bitwise, ProShares, Fidelity, and 21Shares between February 19 and February 23.
Of all the cryptocurrencies, Bitcoin funds had the most inflows, accounting for 95% of the total with an estimated $570 million.
With inflows of $16.8 million, EtETH) came in second. XRP ETPs from Ripple and Litecoin (LTC) saw inflows of $1.1 million and $1 million, respectively.
Contrary to the general trend, Solana (SOL) reported $3 million in withdrawals because of “recent outages,” which could have “impacted sentiment” regarding the layer 1 token, according to CoinShares.
CoinShares reported that significant inflows were seen into the US’s higher-cost spot issuers, especially into the recently established spot Bitcoin ETF issuers, coinciding with the rise in inflows into digital asset investment products last week.
Despite $436 million in withdrawals from Grayscale, $609.5 million was invested in U.S.-based cryptocurrency products.
Small inflows of $8.2 million and $2.1 million were recorded by Brazil and Switzerland, respectively, while the Canadian market saw the biggest withdrawals from digital asset investment products, losing $17.8 million, and Sweden followed with $8 million.
The recent price surge of Bitcoin goods above $53,000, followed by a minor drop to $50,500, is correlated with increased inflows into the market.
BTC had risen above this barrier as of the time of publication, hitting a new high for the year at $53,650.
When Bitcoin slid from a high of $57,872 on December 3, 2021, to $16,600 in November 2022, it was the last time it traded above $53,600. That was more than two years ago.
The surge in Bitcoin’s price beyond the $53,000 mark has captured the attention of investors worldwide, signaling renewed bullish momentum in the cryptocurrency market.
This milestone comes amid growing institutional adoption and increasing mainstream acceptance of Bitcoin as a legitimate asset class.
As Bitcoin continues to establish itself as a store of value and a hedge against inflation, investors are reassessing their portfolios to include allocations to the digital currency, further driving its upward trajectory.
The surpassing of $53,000 demonstrates the resilience and strength of Bitcoin, overcoming previous resistance levels and paving the way for further price appreciation.
With heightened interest from institutional investors, along with growing retail participation, Bitcoin’s ascent underscores its status as a leading contender in the global financial landscape.
As the cryptocurrency market continues to evolve and mature, the $53,000 milestone serves as a testament to Bitcoin’s enduring appeal and its potential to reshape the future of finance.
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