- Digital asset funds recorded $3.85 billion in inflows last week, with BlackRock‘s iShares ETFs capturing $3.2 billion.
- Ethereum ETF products reached a record $1.2 billion in weekly inflows, exceeding previous peaks from July 2023.
- The United States leads digital asset investment products with $3.6 billion in total inflows.
- Wall Street ETF issuers now control more Bitcoin than any other entity, with total ETF market cap reaching $109 billion.
- Long-term Bitcoin holders have sold 827,783 BTC in the past 30 days, offsetting institutional buying pressure.
Institutional Investment Surge Propels Crypto ETFs to Record Heights
Digital asset investment products witnessed unprecedented capital inflows of $3.85 billion last week, marking a historic milestone for cryptocurrency markets, according to a CoinShares report released Monday.
BlackRock Dominance and Market Dynamics
BlackRock‘s iShares ETFs emerged as the dominant force, attracting $3.2 billion in new investments and expanding its cryptocurrency assets under management to $56.7 billion. The institutional appetite extends beyond Bitcoin, with Ethereum-based products securing $1.2 billion in inflows, setting a new record since the SEC’s approval of spot ETH ETFs.
The United States has established itself as the primary market for digital asset investment products, accounting for $3.6 billion in total inflows. Switzerland follows with $160 million, while Germany, Canada, and Australia complete the top five markets.
Market Impact and Price Action
The total market capitalization of Bitcoin ETFs has reached $109 billion, according to CoinGlass data, surpassing combined holdings of major players like MicroStrategy and Binance. However, CryptoQuant analysis indicates that long-term Bitcoin holders have liquidated 827,783 BTC over the past month, contributing to price volatility around the $100,000 mark.
Bitcoin’s current value hovers near $97,000, following its brief ascent above $100,000 last week. The cryptocurrency’s market capitalization has exceeded $2 trillion, making it more valuable than the Australian dollar.
Independent financial analyst Chris Skinner of The Finanser notes: "This is not a Bitcoin play, but a play on the institutionalization of cryptocurrency, which the libertarians never wanted but was inevitable."
The market anticipates further developments in the cryptocurrency ETF space, with speculation about potential approval for products tracking smaller cryptocurrencies like XRP and Solana. The appointment of David Sacks as cryptocurrency advisor and Paul Atkins as potential SEC chair under the incoming administration suggests a shift toward more favorable regulatory oversight for digital assets.
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