Institutional Appetite Lifts Crypto Markets
Bitcoin spot exchange-traded fund fervor has led to institutional investors reinvesting in crypto assets, with a record 346 million inflows recorded last week. This is the highest total observed in the past nine weeks of inflows, according to CoinShares.
Giovanni Vicioso, the global head of cryptocurrency products at CME, commented on the return of institutional traders to crypto derivatives markets, stating that the increase in volume and open interest is a clear indication of institutions moving into this space.
The fresh inflow of funds has pushed total assets under management to an 18-month high of $45.3 billion. Bloomberg ETF analyst James Seyffart predicts that spot Bitcoin funds will be approved during the second week of January.
ETF Store President Nate Geraci warns of mass chaos if the SEC doesn’t allow GBTC to up list alongside other spot BTC ETFs launch. Institutions usually lead retail when it comes to investing in crypto, with the past five weeks seeing yearly highs in weekly inflows and a 24% increase in spot market capitalization.
(With inputs from Shikha Singh)
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