Cryptocurrency funds recorded $103 million inflows in the penultimate week of the year as institutional investors keep momentum toward a spot Bitcoin (BTC) ETF approval by the Securities and Exchange Commission (SEC).
Recent data provided by CoinShares shows massive inflows into digital asset investment products in the last seven days with BTC and altcoins staying in the green zone. After posting $16 million outflows the previous week, bulls seek to press on with the momentum garnered at the start of the month.
US$103m inflows in digital assets last week, no report on Monday. Merry Christmas! pic.twitter.com/xAVzCrPPkQ
— James Butterfill (@jbutterfill) December 23, 2023
Total weekly inflows stood at $103 million while assets under management (AUM) sit slightly above $52 billion as on-chain activity and decentralized finance (DeFi) activity ramps up.
Bitcoin powers up the market
Bitcoin had the lion’s share of inflows as expected raking in $87.6 million, a staggering 85% of weekly positive movements. BTC continues to be a favorite asset for institutional investors in recent weeks due to three major reasons.
First, the anticipation of a spot Bitcoin ETF drags more investment to the sector with several wealth managers predicting a potential approval next usage amid key filings, edits, and court victories recorded in recent months.
Approval of a spot BTC ETF in the United States is expected to introduce a new financial cycle in the market with multiple estimates from industry executives and analysts.
Notably, it will create a new window of entry for institutional funds in the market. According to Matrixport, the price of the asset could go over $50,000 while market analysts at Bitfinex predict an upward movement should the status quo remain.
Secondly, after a horrid 2022 which saw the price of Bitcoin plummet over 55% due to macroeconomic factors, this year has seen picks leading to more exposure by investors.
At press time, BTC exchanges hands at $43,477, a 16% increase in the past 30 days and over 155% growth in the last 12 months. BTC’s AUM stands at $37 billion as the price surge continues.
Finally, the price of Bitcoin and institutional inflows continue to rise as a result of the upcoming halving which has seen miners double down on their efficiency with bulls expecting the regular price surge.
Altcoins maintain bullish momentum
Altcoins were also in the green zone in terms of institutional products after notching slight price gains and attracting entry to its investment funds.
Ethereum (ETH) inflows of $7.9 million while e-bike Solana and multi assets posted $6 million and $2.3 million respectively. Solana continues his good run with increased AUM and transaction volumes amid a skyrocketing asset price.
On the geographical front, Germany and Canada led the pack with $41.6 million and $35.8 million in inflows while the United States and Switzerland recorded $20.4 million and $15 million respectively.
The post Digital Asset Products Record $103 Million Inflows as Assets Under Management Maintains $52 Billion Position appeared first on Cryptonews.