Crypto News- Bitcoin’s price surge owes much to the influx of cash into crypto funds, according to a recent report by fund manager CoinShares. However, this trend might soon hit the brakes, the report suggests.
Is the Bitcoin ETF Frenzy Cooling Off? YTD Surge Inches Toward 14 Billion Dollars
Over the past week alone, a staggering $646 million poured into major funds specializing in digital assets, bringing the total inflows for 2024 to a record-breaking $13.8 billion, as disclosed by the firm.
Investors Pivot Amid GBTC Decline: Embracing Alternatives in Bitcoin Trusts
Despite Grayscale’s Bitcoin Trust (GBTC) witnessing continued deflation since its transition to an exchange-traded fund (ETF) earlier this year, investors have been directing funds into alternatives such as BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund.
Bitcoin remains the primary beneficiary of these inflows, though CoinShares highlights a noticeable moderation in investor enthusiasm for these products.
Following the U.S. Securities and Exchange Commission’s green light on 11 Bitcoin ETFs in January, cash has been pouring into these popular funds, significantly boosting the cryptocurrency’s price. Notably, GBTC has seen outflows as investors redeem shares they were previously unable to sell during its closed-end fund phase. However, experts, echoing CoinShares’ sentiment, anticipate a slowdown in these outflows.
European Crypto Funds Shine: Solana and Litecoin Attract Investors as Ethereum Faces Outflows
CoinShares’ report also highlights European crypto funds attracting investments for exposure to assets like Solana and Litecoin, while Ethereum funds experienced their fourth consecutive week of cash outflows.
As of now, Bitcoin is valued at $71,766, slightly below its March peak of $73,737.
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