Bitcoin ETF

Bitcoin

Crypto exchange-traded products (ETPs) recently witnessed a significant surge in weekly inflows. According to the latest report from CoinShares, a prominent asset management platform, inflows reached a staggering $326 million for the week ending October 27. This figure notably overshadows the $66 million from just the preceding week.
ETPs, for those new to the term, are investment funds. These funds track the price of specific assets, such as large market-cap cryptocurrencies like Bitcoin and Ether. Moreover, a considerable number of investors prefer using ETPs to gain exposure to crypto prices. The primary reason is the convenience of holding these shares in traditional brokerage accounts.
When we talk about an ETP “inflow”, we’re referring to situations where the fund’s price ascends at a rate faster than its underlying asset. This dynamic prompts the fund to purchase the asset. Typically, this is interpreted as a bullish sign for the said asset. Conversely, an “outflow” happens when the fund offloads the asset due to a price decline in its shares, often perceived as a bearish indicator.
Highlighting the gravity of the situation, the $326 million influx is the highest in 15 months, since July 2022, to be precise. Additionally, it marks the fifth consecutive week of inflows into crypto ETPs.
One possible driving force behind this influx, as pointed out by CoinShares, is the mounting anticipation among investors. There’s a prevalent sentiment that the U.S. Securities and Exchange Commission (SEC) might green-light a spot-based Bitcoin ETF in the U.S. Such an approval would naturally lead to further inflows into American funds.
However, not all cryptocurrencies witnessed this favorable tide. While Bitcoin ETPs absorbed a dominant 90% of the total inflows, Solana’s SOL enjoyed a $24 million influx. Ether, on the other hand, experienced a setback with outflows worth $6 million.
It’s worth noting that, despite several applications, the SEC still needs to give the nod to a spot Bitcoin ETP. Recent actions by companies like Van Eck and Hashdex, such as amending applications and meetings with the SEC, underline their keen interest in obtaining this approval.

CoinShares reports $326 million surge in crypto ETP weekly inflows

Cryptopolitan_News

发布于 2023年10月30日的其他文章

Cosmos and Chainlink price predictions: whales driving Everlodge

Bitcoin Futures Market Heats Up: CME Nears the Top With $3.54B!

CME becomes second-largest Bitcoin futures exchange as open interest surges

ETH Enthusiast Borrows $3.4M in WBTC to Amass 1,526 ETH Amidst Market Surge

Gemini hunts for Genesis’ GBTC shares to repay all Earn claims

RGU Professor Wins Academic of the Year at UK Awards

订阅我们免费的电子期刊，获取每日最新加密领域动态！