Bitcoin investment funds have seen capital inflows surpass $1 billion, an all-time high, as the cryptocurrency has surged in price for two straight weeks.
According to investment consultancy ByteTree, the number of Bitcoins held by investment funds rose to 863,434 units this week, surpassing the previous record high set in April 2022. Funds have added about 22,100 Bitcoins over the past month.
"It's no surprise that the asset class has seen a surge in value recently," said Charlie Morris, founder of ByteTree.
Bitcoin hit an 18-month high of around $37,960 earlier this week. The coin is up 39% in a month and 125% year-to-date. The Bitcoin Fear and Greed Index also recently rose to its highest level since mid-June 2022, the period when the Terra ecosystem collapsed.
Broader crypto funds have also seen a surge in new inflows in recent weeks. Digital asset manager CoinShares reported net inflows of $767 million over the past six weeks, the most since the 2021 bull market. Broader funds are those that track and seek returns across hundreds, sometimes thousands, of units.
The above figures show that investors’ interest and expectations in the cryptocurrency market, especially Bitcoin, are increasing. They believe that the market price of these assets will continue to increase after the news that cryptocurrency ETFs will soon be approved in the US. From there, investors expect to promote a larger capital flow into cryptocurrencies. This will allow many investors to buy cryptocurrencies without direct trading.
Matt Hougan, chief investment officer at Bitwise Asset Management, believes there is still a long way to go before the SEC approves a spot Bitcoin ETF. According to him, most financial advisors continue to believe that a cryptocurrency ETF will have to wait until 2025 or later to appear on the market.
Recently, the cryptocurrency market has received more positive news from major investment banks. Bloomberg reported that wealthy clients of Swiss bank UBS can access three major cryptocurrency ETFs: Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETF, all authorized by the Hong Kong Securities and Futures Commission. HSBC also previously announced plans to launch digital asset custody services for institutional clients.
Xiao Gu (according to CoinDesk )
Source link
Comment (0)