Cryptocurrency Institutional Funds Record $151 Million Inflows in First Week of 2024

Cryptocurrency Institutional Funds Record $151 Million Inflows in First Week of 2024

Digital assets investment funds are seeing record-breaking growth, with over $151 million in inflows in the first week of 2024.

This is largely due to institutional investors who are beginning to adopt digital assets as a legitimate investment option.

In fact, many experts believe that the approval of a spot Bitcoin (BTC) ETF by the Securities and Exchange Commission (SEC) could trigger even more growth in the digital assets market.

A CoinShares Digital Asset Fund Flow report released on January 8th shows that the market continues to exhibit bullish sentiments, with asset prices surging in the early days of the year before experiencing a slight market correction.

According to the report, crypto investment products notched $151 million in gains in the past seven days, with inflows totaling $2.3 billion since the landmark Grayscale victory over the SEC.

This brings the total investment in crypto products to over $3.5 billion, as institutional investors continue to flock to the market.

The ETF optimism that has pervaded the industry’s narratives persists with multiple developments springing up around stakeholders as firms make their final adjustments to filings, onboard new partners, and renew their bullish stances.

Predominantly, the Matrixport report towards the end of the year projecting a $50,000 Bitcoin price at the end of January ignited investors for a potential uphill run. As the price of Bitcoin moved past $45,000, institutional products around the market leader and altcoins posted new entrants.

This upward momentum has caused some to believe that the price of Bitcoin could reach $100,000 by the end of the year.

Bitcoin and Ethereum’s products surge

Bitcoin products continue to be a hot topic, with a majority of inflows totaling $113 million in the last week. Short Bitcoin, however, posted outflows of $1 million in the same time period. Despite this, equities started the year on a high with $24 million inflows.

Bitcoin products continue to be a hot topic, with a majority of inflows totaling $113 million in the last week. Short Bitcoin, however, posted outflows of $1 million. Equities also started the year on a high, with $24 million inflows.

In the altcoin world, Ethereum had a great fourth quarter in 2023, with over $30 million in inflows. The price of Ethereum passed $2,250, and many wealthy investors are backing it based on the staking feature, which could result in sizable profits.

SOL tanks, ADA gains

Solana (SOL) which is community dubbed the ETH killer and an institutional investor favorite for most part of 2023 has been on a roller coaster ride this year. The asset’s products have seen outflows of $5 million in the last seven days after its price slid 10.35% in the same period.

Solana went on a surge in December with increased transactions around the BONK token and sales numbers recorded in its flagship SAGA smartphone. The uphill climb of the asset which saw it topple BNB as the fourth most valued asset lost momentum with the asset trading at $94 at press time.

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Cardano (ADA) and Ripple (XRP) recorded inflows of $4 million and $1 million respectively amid a sell-off in the wider market. Avalanche (AVAX) notched inflows of $2 million.

Multi-asset saw gains of $5 million yesterday, bringing its assets under management (AUM) to $3.2 billion. Bitcoin’s AUM, meanwhile, stands at $37.8 billion, giving the total market AUM a value of above $52 billion.

DeFi figures continue to increase, further demonstrating the potential of decentralized finance.

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