Digital-asset investment products such as Bitcoin futures exchange-traded funds have seen the largest single week of inflows since July of last year.
The funds raked in about $326 million with expectations rising that the US Securities and Exchange Commission is poised to approve a spot-based Bitcoin ETF, according to a report by crypto asset manager CoinShares on Monday. The optimism is also helping to boost demand for so-called altcoins, with Solana-related products seeing $24 million in inflows. Ether, the second largest cryptocurrency after Bitcoin, saw $6 million in outflows.
Forecasts for the approval of a spot Bitcoin ETF have been increasing since the SEC declined to appeal an August court ruling that threw out its rejection of a plan by Grayscale to convert its Bitcoin trust to an ETF. Bitcoin is trading at levels that have not been seen since the crypto market meltdown last May.
However, investors are showing restraint despite the prospect of a spot Bitcoin ETF approval. “While positive for Bitcoin, this weekly inflow only ranks the 21st largest on record, suggesting continued restraint among investors,” the report said.
The largest inflows were from Canada, Germany and Switzerland. The US accounted for 12% of the inflows. Overall, the total amount of assets under management are $37.8 billion, the highest since May 2022, the report said.
This article was provided by Bloomberg News.