Investing
$199M Flows Into Digital Asset Funds in a Week After BlackRock's Bitcoin ETF Application
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Digital asset investment products saw $199 million in inflows last week, ending 9 consecutive weeks of net outflows—the biggest net inflows in nearly a year come amid growing institutional investors’ interest in digital assets, propelled by BackRock’s spot bitcoin ETF application.
Bitcoin Funds Accounted for 94% of Inflows Last week
Inflows in digital asset investment funds surged to $199 million last week after BlackRock’s application for a spot Bitcoin exchange-traded fund (ETF) led to a significant improvement in crypto market sentiment. This marks the largest weekly inflows since July 2022.
During the same week, trading volumes in exchange-traded products (ETP) were $2.5 billion, 170% of the average in 2023. This major improvement in investor optimism ended nine consecutive weeks of outflows.
Bitcoin accounted for most inflows (94%), seeing $188 million last week. Short-bitcoin investment products recorded outflows for the 9th straight week, totaling $4.9 million
Meanwhile, Ethereum-related funds saw $7.8 million in inflows during the week, representing around 0.1% of assets under management (AUM). compared to Bitcoin’s inflows at 0.7%. This implies that inventors’ interest in Bitcoin is notably higher.
Growing Institutional Confidence Fuels Crypto Market Optimism
The significant shift in fund flows comes amid the latest institutional hype in the crypto market. To be more specific, earlier this month, the world’s biggest asset manager BlackRock filed with the Securities and Exchange Commission (SEC) to launch a spot Bitcoin ETF.
This was followed by several other traditional finance (TradFi) firms, including Invesco, WisdomTree, and crypto index manager Bitwise Asset Management. All three companies have seen their previous Bitcoin ETF filings rejected.
If approved, the rollout of BTC ETF funds managed by such high-profile financial giants could drive further institutional crypto adoption and lead to a substantial shift in the market landscape. Institutional investors are crucial because of their significant financial resources and potential impact on market stability and economic growth.
Since BlackRock filed for Bitcoin ETF on June 15, the price of Bitcoin surged roughly 20% and surpassed the $30,000 mark for the second time this year. When writing, the leading cryptocurrency was trading at $30,329.
This article originally appeared on The Tokenist
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