2024

Bitcoin ETF

Spot

<p>Crypto investment products have started the year 2024 on a strong note, with a total of $151 million in inflows recorded during the first week, according to a report.&nbsp;</p>
<p>Most of these inflows were dominated by Bitcoin-based funds, which added a substantial $113 million to their assets under management.</p>
<h2 class="wp-block-heading" id="bitcoin-funds-take-the-lead">Bitcoin funds take the lead</h2>
<p>The surge in Bitcoin-based fund inflows can be attributed to the highly-anticipated imminent approval of a spot <a href="https://www.cryptopolitan.com/bitcoin-etf-set-for-trading-post-approval/" rel="noopener noreferrer nofollow">Bitcoin ETF</a> in the United States. Investors seem to be positioning themselves ahead of this potentially market-shifting event, as they poured significant capital into Bitcoin-related investment products.</p>
<p>Aside from Bitcoin, blockchain equities also saw substantial inflows, totaling $24 million during the same week. This indicates a broader interest in the crypto and blockchain than digital currencies.</p>
<h2 class="wp-block-heading" id="short-bitcoin-products-experience-minor-outflows">Short Bitcoin products experience minor outflows</h2>
<p>Interestingly, short Bitcoin products registered minor outflows of $1.1 million during the same period. This is contrary to expectations that launching a Bitcoin ETF in the U.S. might lead to a “buy the rumor, sell the news” scenario, where investors would bet against Bitcoin prices after the ETF approval. However, the <a href="https://blog.coinshares.com/volume-164-digital-asset-fund-flows-weekly-report-1df57aabb9c5" rel="noopener noreferrer nofollow" target="_blank">data </a>shows this has not happened in recent weeks.</p>
<h2 class="wp-block-heading" id="spot-bitcoin-etf-approval-looms">Spot Bitcoin ETF approval looms</h2>
<p>The growing interest in Bitcoin investment products comes as several applicants, including prominent firms like <a href="https://www.cryptopolitan.com/blackrock-bitcoin-etf-approval-wednesday/" rel="noopener noreferrer nofollow">BlackRock,</a> Ark Invest/21Shares, VanEck, Fidelity, and Valkyrie, filed amended S-1 forms detailing proposed sponsor fees and other crucial information. This marks the final step in the approval process before the potential launch of a spot Bitcoin ETF.</p>
<h2 class="wp-block-heading" id="bitcoin-s-price-movement">Bitcoin’s price movement</h2>
<p>Bitcoin’s price briefly surged above $45,000 following the filings, indicating the market’s anticipation for a spot Bitcoin ETF. Bitcoin is currently trading at $44,860, as The Block’s price page reported.</p>
<p>Regionally, the United States accounted for the lion’s share of last week’s fund inflows, with 55% coming from U.S. exchanges. This is noteworthy as spot Bitcoin ETF products have not yet been launched in the country. Germany and Switzerland-based funds also attracted significant inflows, accounting for 21% and 17% of the total inflows, respectively.</p>
<h2 class="wp-block-heading" id="ether-investment-products-show-resilience">Ether investment products show resilience</h2>
<p>In addition to Bitcoin,<a href="https://www.cryptopolitan.com/bitcoin-rise-as-ethereum-sees-a-decline/" rel="noopener noreferrer nofollow"> Ether </a>investment products demonstrated resilience, recording inflows of $29 million during the same week. Over the past nine weeks, these products have seen inflows totaling $215 million, marking a significant turnaround in sentiment.&nbsp;</p>
<p>Moreover, there is speculation that the U.S. Securities and Exchange Commission (SEC) may approve a spot Ether ETF product later in the year, which could further boost investor interest in Ethereum.</p>
<p>While Bitcoin and Ether were spotlighted, several altcoins also experienced positive fund flows. Cardano, Avalanche, and Litecoin-based funds saw inflows of $3.7 million, $2 million, and $1.4 million, respectively. These figures reflect growing investor interest in a diverse range of cryptocurrencies.</p>
<p>However, it wasn’t all positive news for the crypto market.<a href="https://www.cryptopolitan.com/solana-based-trader-achieves-21715x-gain/" rel="noopener noreferrer nofollow"> Solana-based </a>products had a rough start to the year, registering $5.3 million in outflows.&nbsp;</p>
<p>This comes as the value of Solana experienced a notable decline of over 10%. It’s essential to note that cryptocurrency markets can be highly volatile, and investor sentiment can shift rapidly.</p>

Bitcoin-based funds lead inflows as Spot Bitcoin ETF approval looms

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