Bitcoin (BTC) and other cryptocurrencies have seen a surge in institutional investment over the past two months, with over $1 billion flowing into crypto investment products. This trend is indicative of the growing interest in digital assets as a viable investment option.
The rise in institutional investment in Bitcoin and other cryptocurrencies has coincided with significant price gains in the market. The excitement over the potential approval of the United States’ first spot exchange-traded fund (ETF) has also contributed to the increased inflows.
According to data from TradingView, the total crypto market cap has increased by $600 billion since November 2022. This surge in market cap reflects the growing interest and investment in digital assets.
CoinShares, a crypto asset management firm, reported that digital asset investment products saw inflows totaling US$293 million last week, bringing the 7-week run of inflows past the US$1 billion mark. Year-to-date inflows now stand at US$1.14 billion, making it the third highest yearly inflow on record.
One of the most notable statistics from CoinShares’ report is the remarkable growth in assets under management (AUM) for crypto exchange-traded products (ETPs). Since the beginning of the year, AUM has nearly doubled and gained almost 10% in the past week alone. At US$44.3 billion, total AUM is now the highest since the major crypto fund failures in May 2022.
Bitcoin has been a key beneficiary of the institutional inflows, with US$240 million being deployed into BTC investment products last week. Year-to-date inflows for Bitcoin now stand at US$1.08 billion, indicating a strong positive sentiment among investors. On the other hand, short-bitcoin saw US$7 million outflows, further demonstrating the optimistic outlook for Bitcoin.
The renewed interest in Bitcoin and other cryptocurrencies has also led to a reassessment of Bitcoin supply dynamics. On-chain analytics firm Glassnode reported that BTC being stored for long-term holding now outpaces the amount being mined by 2.4 times. This data suggests that investors are increasingly holding onto their Bitcoin for the long-term, which is a positive sign for the market.
Philip Swift, creator of the statistics platform Look Into Bitcoin, highlighted the increasing number of wallet entities holding Bitcoin, both large and small. He described this as a sign of adoption, indicating a growing interest in Bitcoin and its potential as a long-term investment.
It’s important to note that this article does not provide investment advice and readers should conduct their own research before making any investment decisions. Every investment and trading move involves risk, and it’s essential to carefully consider your own financial situation and risk tolerance before investing in cryptocurrencies or any other assets.