Home Coin news Bitcoin Investment Products Record $3 Billion Inflow

Bitcoin Investment Products Record $3 Billion Inflow

18 Mar, 2024 Coin news

Bitcoin Investment Products Record $3 Billion Inflow

Spot Bitcoin investment products in the United States witnessed another unprecedented week of inflows, with $2.9 billion in new assets being added.

A report from CoinShares on March 18 highlighted that, so far this year, $13.2 billion has been invested into products like spot Bitcoin exchange-traded funds (ETFs), bringing the total Bitcoin under management to $74.61 billion.

investments in Bitcoin products represented 97% of all inflows. CoinShares analyst James Butterfill noted, “Digital asset investment products saw record weekly inflows totaling US$2.9bn, beating the prior week’s all-time record of US$2.7bn.”

Despite this surge in investment into Bitcoin-focused products, Ether and other alternative cryptocurrencies haven't attracted as much capital, with their combined inflows being a small portion of Bitcoin’s total for the year.

Even with record-breaking inflows into ETFs, Bitcoin’s price fell by 7% over the last week, standing at $67,418 at the time of writing.

Internationally, there has been a notable shift, with $738 million being withdrawn from Bitcoin exchange-traded products in markets like Germany, Canada, and Sweden, partly in favor of U.S. offerings.

U.S. Bitcoin ETFs, which have been charging minimal fees—some as low as 0% for a share of the inflows—since their regulatory approval in January, now command over 80% of the spot Bitcoin ETF market.

The rising popularity of Bitcoin ETFs has led regulatory bodies, including the Financial Conduct Authority (FCA) in the United Kingdom and the Securities and Futures Commission (SFC) in Hong Kong, to reconsider their positions on such financial products.

On March 11, the FCA announced it would “not object to requests from Recognised Investment Exchanges (RIEs) to create a U.K. listed market segment for cryptoasset-backed Exchange Traded Notes.”

Moreover, on January 29, Hong Kong’s SFC accepted its first application for a spot Bitcoin ETF.

Sources:

https://cointelegraph.com/news/us-bitcoin-spot-etfs-see-another-record-inflow

https://etp.coinshares.com/de/knowledge/market-activity/fund-flows-18-03-24

https://www.bloomberg.com/news/articles/2024-03-15/legacy-bitcoin-funds-bleed-cash-after-blockbuster-us-etf-launch

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