Investor enthusiasm for digital asset investment products remains robust, as evidenced by recent influxes into various offerings. According to a report from CoinShares, a substantial $646 million flowed into these vehicles, propelling year-to-date inflows to an unprecedented $13.8 billion, surpassing the previous year’s total of $10.6 billion.
Bitcoin remains the primary focal point for investors, with inflows totaling $663 million. However, short-bitcoin investment products experienced outflows for the third consecutive week, totaling $9.5 million. This suggests a minor capitulation among bearish investors.
Excitement surrounding Spot ETFs begins to temper.
While the general trend remains positive, the report notes signs of waning enthusiasm among exchange-traded fund (ETF) investors. Weekly flow levels have failed to reach the peaks witnessed in early March, with volumes for the past week dipping to $17.4 billion, a notable decline from the $43 billion recorded in the first week of March.
According CoinShares, last week saw an inflow of $646 million into digital asset investment products. The total inflow for this year has reached a record high of $13.8 billion. Bitcoin inflows amounted to $663 million, while short Bitcoin investment products experienced outflows…
— Wu Blockchain (@WuBlockchain) April 8, 2024
Regionally, sentiment remains divergent. In the United States, there was a significant influx of $648 million, while Brazil, Hong Kong, and Germany witnessed inflows of $10 million, $9 million, and $9.6 million, respectively. Conversely, Switzerland and Canada experienced outflows of $27 million and $7.3 million, respectively.
Meanwhile, Ethereum sustained outflows for the fourth consecutive week, totaling $22.5 million. However, most other altcoins continued to attract inflows. Notably, Litecoin, Solana, and Filecoin saw inflows of $4.4 million, $4 million, and $1.4 million, respectively.
The $646 million inflows came after investors injected another $862 million into digital asset investment products the previous week.
Industry experts continue to hold a positive outlook.
Despite the decelerating flow of Bitcoin spot ETFs, key figures in the industry, including Ripple CEO Brad Garlinghouse, maintain an optimistic stance. Garlinghouse anticipates a doubling of the total market value of cryptocurrencies within the current year. He attributes this projected surge primarily to the emergence of spot ETFs and the impending Bitcoin halving, which he perceives as significant drivers of growth.
Garlinghouse underscores the pivotal role of spot ETFs in injecting real institutional capital into the cryptocurrency space, a development that he views with optimism. In an interview with CNBC on April 7, he expressed his confidence in the broader macroeconomic trends, particularly the advent of ETFs, which he believes are ushering in an era of genuine institutional investment in digital assets.
Similarly, Matteo Greco, a research analyst at Fineqia International, shares a bullish outlook, forecasting Bitcoin to attain a value of $75,000 by the time of the halving event. Citing historical precedents, Greco notes that previous BTC halving events have been pivotal, marking significant inflection points followed by prolonged periods of upward trajectory, ultimately culminating in cycle peaks.
As of the present moment, Bitcoin is trading at $72,308, marking a notable increase of over 4% within the past day. Notably, the leading cryptocurrency stands at a mere 2% distance from its all-time high of $73,750, recorded on March 14, according to data sourced from CoinMarketCap. These figures underscore the resilience and potential for growth within the cryptocurrency market, bolstering the optimism expressed by industry pundits.
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