Bitcoin, Solana see significant inflows amid BTC ETF hype: Report

November 17, 2023
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Bitcoin, Solana see significant inflows amid BTC ETF hype: Report

The excitement surrounding spot Bitcoin exchange-traded funds (ETFs) has prompted cryptocurrency investment products to witness significant inflows for the fourth consecutive week.

Inflows involving digital asset investment products hit $66 million, bringing the total value of inflows in the past four weeks to $179 million, crypto asset management firm CoinShares reported on Oct. 23 in its weekly analysis review of exchange-traded products that track crypto assets offered by Grayscale, ProShares, and 21Shares, among other investment firm.

The report noted that while the recent inflows are likely linked to the anticipation over a launch of a spot Bitcoin ETF in the United States, the latest numbers were relatively low compared to the initial inflows following Blackrock’s announcement in June when total inflows reached $807 million in four consecutive weeks. It added:

“It suggests that the lower inflows this time round, despite the positive news from the Grayscale vs SEC court ruling, are indicative of investors adopting a more cautious approach this time.”

Bitcoin, the original cryptocurrency and the largest among such assets in terms of market capitalization, took the lion’s share of the latest value of inflows, about 84%, pushing inflows year-to-date to $315 million, the report said.

Solana, which has been touted as the “altcoin of choice” and among the top 10 coins by market capitalization, witnessed its capital inflow reach $15.5 million. It now has $74 million in inflows year-to-date of inflows, “making it the most popular altcoin this year so far, the report noted.

Flows by asset. (Source: CoinShares)

Over the past two weeks, a few Bitcoin ETF applicants in the U.S., including BlackRock, Fidelity, and Ark Invest, made changes to their filings.

Grayscale also filed a new registration application on Oct. 19 to convert its Bitcoin Trust Shares (GBTC) to an ETF. This move shortly came after the asset management firm won a court case against the Securities and Exchange Commission regarding the agency’s earlier rejection.

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