Weekly Investments in Bitcoin ETF Surge, Marking First Growth in Over a Month (BTC)

  • Bitcoin exchange-traded funds (ETFs) have started to see an influx of fresh cash after five weeks of outflows, with $130 million entering the funds last week, according to a report from European asset manager CoinShares.
  • Most of the funds entered American ETFs, particularly the new spot ETFs that provide traditional stock investors with exposure to Bitcoin.
  • However, European investors withdrew $14 million from Ethereum-related funds due to bearish sentiment surrounding the approval of an Ethereum ETF.

Bitcoin ETFs see fresh cash inflows after five weeks of outflows, with American spot ETFs receiving the majority of funds. Meanwhile, Ethereum-related funds experience outflows amid uncertainty over Ethereum ETF approval.

Bitcoin ETFs Experience Fresh Cash Inflows

After five weeks of outflows, Bitcoin exchange-traded funds (ETFs) have begun to see an influx of fresh cash. A report released on Monday by European asset manager CoinShares revealed that $130 million entered the funds last week. CoinShares tracks all crypto funds from the U.S. to Europe and Australia. The majority of last week’s movements entered American funds, particularly the new spot ETFs that provide traditional stock investors with exposure to Bitcoin.

Ethereum-Related Funds See Outflows Amid ETF Uncertainty

While Bitcoin ETFs experienced inflows, Ethereum-related funds saw outflows. European investors withdrew $14 million from these funds due to bearish sentiment surrounding the approval of an Ethereum ETF. Several high-profile investment firms are hoping to get approval from the Securities and Exchange Commission (SEC) for an Ethereum ETF. However, experts believe that the regulator will delay in giving such products the green light—if they’re approved at all. CoinShares noted that the lack of interaction by U.S. regulators with ETF issuer applications for a spot Ethereum ETF has increased speculation that the ETF approval is not imminent, leading to the outflows.

Grayscale’s Bitcoin Trust Sees Lowest Outflows Since ETF Conversion

Perhaps the best news for investors who are long on Bitcoin is that the amount of money leaving Grayscale’s Bitcoin Trust (GBTC) last week was the lowest it has been since its conversion to an ETF in January. Since shifting from a closed-end fund model to an ETF, investors have aggressively redeemed shares to cash out of the product—either to look for a cheaper ETF or take home gains. These massive outflows have put downward pressure on Bitcoin’s price. However, at the start of this month, more investors started buying GBTC shares than redeeming them, which could lead to the price of the asset going up if more investors want exposure to the biggest cryptocurrency by market cap, CoinShares said.

Conclusion

The recent influx of cash into Bitcoin ETFs signals a potential resurgence of investor interest in the cryptocurrency. However, the uncertainty surrounding the approval of an Ethereum ETF has led to outflows from Ethereum-related funds. As the crypto market continues to evolve, investors will need to keep a close eye on these developments to make informed decisions.

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Merritt Vale
Merritt Valehttps://en.coinotag.com/
Merritt Vale is a 24-year-old woman who has a strong affinity for the Dogecoin community and has a particular love for the altcoin Shiba. With a passion for understanding the latest trends and developments in the cryptocurrency industry, Merritt provides fresh perspectives and valuable insights to her readers.
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