Bitcoin Soars with $2 Billion Inflows as Ether Surges in Institutional Interest

Bitcoin Soars $2 Billion, Ether Witnesses Record Institutional Demand

Crypto News- Institutional interest in cryptocurrency reached new heights last week, as CoinShares disclosed a staggering $2 billion influx into crypto investment products. This surge marks the continuation of a five-week streak, pushing the total inflows over $4.3 billion. Trading volumes for exchange-traded products (ETPs) also soared to $12.8 billion, a remarkable 55% increase from the previous week.

Bitcoin dominated the investment landscape with over $1.97 billion in inflows, while Ether (ETH) experienced its most significant influx since March, nearing $70 million.

BlackRock’s IBIT Leads the Charge: Bitcoin ETFs Propel Market Recovery

The resurgence in buying activity for spot bitcoin exchange-traded funds (ETFs) in the U.S. mirrors the market’s recovery from a sluggish April. Notably, BlackRock’s IBIT emerged as the largest bitcoin ETF last week, accumulating over $20 billion since its January debut.

James Butterfill, an analyst at CoinShares, highlighted the broad-based nature of the inflows, signaling a favorable sentiment across the market. He noted, ‘Positive price action saw total assets under management (AuM) rise above the $100 billion mark for the first time since March this year.’

SEC’s Approval Sparks Surge: ETH Investments Poised for Growth

Butterfill attributed the increased interest in ETH to the SEC’s decision to greenlight spot ether ETFs. This regulatory approval, coupled with bullish market sentiment, sets the stage for continued growth in ETH investments.

Looking ahead, market observers anticipate sustained inflows into ETH products, potentially driving a year-end rally. Ed Hindi, Chief Investment Officer at Tyr Capital, shared his optimism, forecasting, ‘ $5-10 billion of fresh capital could be channeled through ether products in the short to medium term.’ He added, ‘A price target of $10,000 in 2024 is now a reasonable target, especially when other supportive factors, like ETH now being deflationary, are taken into consideration.’

The SEC’s approval of key regulatory filings for ETH ETFs in May marked a historic milestone for the cryptocurrency. The green light was given to eight ETFs from prominent firms like VanEck, Fidelity, and BlackRock, paving the way for broader adoption and investment opportunities in the crypto market.

FAQ: Crypto Investments Surge

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