In less than two months, institutional investment in Bitcoin has witnessed a staggering influx of over $1 billion, signaling a resurgence in interest in cryptocurrencies.
CoinShares, a prominent crypto asset management firm, highlighted this remarkable trend in its latest weekly report on November 13, underscoring the growing capital flow into Bitcoin and altcoins.
The surge in Bitcoin, Ether, and select altcoin prices can be attributed to the mounting excitement surrounding the potential approval of the United States’ first spot exchange-traded fund (ETF).
Since November 2022, the total market capitalization of the cryptocurrency market has skyrocketed by $600 billion, according to data from TradingView.
However, the past two months have witnessed a substantial uptick in funds allocated to crypto investment products, with CoinShares revealing, “Digital asset investment products saw inflows totaling US$293 million last week, bringing this 7-week run of inflows past the US$1 billion mark, leaving year-to-date inflows at US$1.14 billion, making it the third-highest yearly inflows on record.”
One of the most noteworthy statistics indicating the resurgence of crypto in 2023 is the Assets Under Management (AUM) of crypto exchange-traded products (ETPs).
Since the beginning of the year, this figure has nearly doubled, with a remarkable 10% increase occurring in just the past week.
CoinShares noted, “At US$44.3 billion, total AuM is now the highest since the major crypto fund failures in May 2022.”
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Moreover, the report highlighted that investors seeking long positions in Bitcoin accounted for the majority of the trading volume.
“Bitcoin saw inflows totaling US$240 million last week, pushing year-to-date inflows to US$1.08 billion, while short-bitcoin saw US$7 million outflows, indicative of continued positive sentiment,” the report stated.
This renewed interest has also spurred on-chain analytics firm Glassnode to reevaluate Bitcoin supply dynamics.
As the fourth halving event approaches, Bitcoin holdings for storage now exceed the amount mined by a factor of 2.4.
This development signifies a significant milestone for Bitcoin, attracting intrigue from investors due to its impressive historical returns.
Furthermore, Philip Swift, the creator of the statistics platform Look Into Bitcoin, pointed out the increasing number of wallet entities, both large and small, as a sign of growing adoption.
It’s important to note that this article does not offer investment advice or recommendations.
All investment and trading decisions involve risk, and readers are advised to conduct their own research and due diligence before making any investment decisions.
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