Cryptocurrency investment products saw a new demand last week, recording inflows of $2.7 billion, according to a report. This surge in investor interest has driven large sums of money into crypto assets this year, pushing inflows to record-breaking levels.
The report states that a significant proportion of flows were directed to Bitcoin. This came with the highest-ever price of crypto, which was recorded recently as Bitcoin broke to $72,000 for the first time. Bitcoin and Solana drew in the most new investments, whereas Ethereum saw a small outflow of $2.1 million.
The market is showing a positive bias resulting from the occurrence of certain crypto events, such as the recent approval by the SEC of spot Bitcoin exchange-traded funds in January, which makes cryptocurrency-based ETFs available for institutional investors, and an upcoming Bitcoin halving event in April, which will cut the supply of new Bitcoins in half.
The record annual inflow of $10.3 billion in 2021 seems likely to be taken out next week, less than three months into 2024.
Spot Bitcoin ETF offerings, including from industry giants like BlackRock Inc. and Fidelity Investments, have attracted a majority of the inflows to crypto markets this year. They have also helped offset significant outflows from Grayscale Investments’ Bitcoin ETF since its conversion from a trust in January.
Also Read: Bitcoin’s market cap unlikely to equal gold’s allocation: JPMorgan.
