Bitcoin hits 2-year high as crypto fund inflow nears $600M
(Coin Telegraph)-28/02/2024
Inflows to crypto investment products nearly topped $600 million and reflect traders’ growing interest in Bitcoin and altcoins.
Crypto investment products saw inflows totaling $598 million from institutional Bitcoin investment products over the past seven days, according to the latest report by CoinShares. Crypto exchange-traded products (ETPs) have now witnessed their fourth consecutive week of inflows.
According to CoinShares’ “Digital Asset Fund Flows Weekly” report published on Feb. 26. , the year-to-date inflows have now exceeded $5.7 billion as institutional investors are increasing Bitcoin exposure through the spot Bitcoin ETFs.
CoinShares Head of Research James Butterfill said,
“Earlier in the week, total assets under management (AuM) peaked at US$68.3bn, the highest point since December 2021, although still a way off the US$87bn all-time high seen in November 2021.”
Focus on Bitcoin and spot Bitcoin ETFs
The data follows heavy buying amid a market recovery driven by spot Bitcoin exchange-traded funds (ETF). Institutions deposited nearly $598 million into crypto products offered by BlackRock, ARK Invest, Grayscale, Bitwise, ProShares, Fidelity, and 21Shares between Feb. 19 and Feb. 23 before outflows briefly slowed toward the end of last week.
Bitcoin funds saw the largest inflows for any cryptocurrency, with approximately $570 million, representing 95% of the total. Ether) was second, posting $16.8 million in inflows. Litecoin and Ripple’s XRP ETPs witnessed inflows of $1 million and $1.1 million, respectively.
Solana bucked the overall trend, posting $3 million in outflows due to “recent outages,” which may have possibly “impacted sentiment” around the layer 1 token, according to CoinShares.
U.S. saw weekly inflows of $609 million
In line with digital asset investment products witnessing increased inflows last week, CoinShares highlighted that current higher-cost spot issuers in the United States saw massive inflows, particularly into the new spot Bitcoin ETF issuers. Inflows into U.S.-based crypto products were $609.5 million, notwithstanding $436 million worth of outflows from Grayscale.
Brazil and Switzerland registered minor inflows of $8.2 million and $2.1 million, respectively, while the Canadian market witnessed the largest outflows from digital asset investment products, shedding $17.8 million, followed by Sweden with $8 million in outflows.
Bitcoin price rallies past $53,000
Increased inflows in Bitcoin products are in tandem with the recent price increase above $53,000 before a slight correction to $50,500. At the time of publishing, BTC had scaled past this level to set a new year-to-date high at $53,650.
The last time Bitcoin traded above $53,600 was over two years ago, on Dec. 3, 2021, when it dropped from a high of $57,872 before embarking on a downtrend that took the price to $16,600 in November 2022.
