Digital Asset Products Continue Inflow Streak, Exceed $20.5B YTD
The digital asset investment field has attracted a significant amount of money, with the inflows keeping up the positive trend for the fourth consecutive week. During last week, there was a net capital inflow of $245 million as the report from CoinShares showed year-to-date (YTD) inflows hitting $20.5 billion, an all-time high, therefore, becoming an ever-worth-reading part of the cryptocurrency news you should keep up with.
Moreover, it was a drastic increase in weekly volumes to their highest levels from May – to the amount of $14.8 billion, which was largely sponsored by the newly started Ethereum ETFs.
Bitcoin Products Continue to See Inflows
Asset and activities linked to Bitcoin have been at the center of major investments. In just 7 days, Bitcoin brought in over half a billion dollars, joining $3.6 billion of total inflows for the month and $19 billion in the current year. The spectacular mineral investment is credited to the political flurries in America, especially talking about the comments from the election campaign that mention Bitcoin as one of the potential new strategic reserve assets.
Furthermore, investors’ wishful thinking about a potential rate cut from the Federal Reserve by September 2024 has been a great aptitude in adding to the thrills of those holding the electronic currency.
Ethereum ETFs Drive Significant Interest
As the U.S. took on the ETF model that tracks the value of Ethereum, there was a lot of interest, with the highest level of inflows since December 2020 recorded. The new ETFs mopped up $2.2 billion new inflows, also Ether ETPs trading volumes jumped by 542% of the previous mark.
But the fact that Grayscale has poured Juan Bollion out of an independent mutual investment trust in the high-tech industry, is Tony the fact. But besides its Quantum AI program, they as an institution speculate on cryptocurrency and blockchain a lot. Is it sensationalistic?
Trump’s registration of the Long Bitcoin Impulse
Former President Donald Trump’s enticing mention of the virtual currency has recently put the exhale and inhale that is happening in the Bitcoin market into a higher gear. In the discourse at the bitcoin conference, Trump voiced the idea of having a pro-Bitcoin SEC chairman and also proposed the creation of a position that would hold the strategic Bitcoin reserves similar to the other counterparts; he also mentioned the fact that the market cap of Bitcoin is so much bigger than that in gold.
The following statement was made by the CEO and co-founder of Hyblock Capital, Shubh Varma, “It is quite amazing to see how a political figure who was seemingly a crypto antagonist 2 years back would now be so pro-crypto that it seems imaginary, hinting at a large change in the narrative of Bitcoin and its capabilities of the future.” He, however, added that the climb in institutional investors’ interest in Bitcoin could be a fueling force.
‘Wall Street’ Capable of’ Bitcoin Investment and Funds Selling
The Pension Retirement System of the State of Michigan provided 5% of the resources it managed with an investment in Bitcoin ETFs, which is the second state that has embraced digital assets, the first one being Wisconsin. In addition, according to Steven Fulop, New Jersey’s Cincinnati’s governance pension project is the face of the local governments’ preference with exchange-traded funds investments around the area.
Economic Environment Favors Cryptocurrencies
Other than that, the general economic situation also has a significant influence on determining the bull market mentality related to the cryptocurrencies. The expectation of the Federal Reserve to execute interest rate cuts in September in the past has compelled investors to invest in alternative assets like Bitcoin, in search of higher returns.
Besides, the retail investors’ mood is quite optimistic too. Binance’s data shows that only 45% of retail accounts are buying Bitcoin today. This percentage is actually lower than 90 days ago when 55% of retail accounts were short. “The low percentage of long positions is what interests me. Usually, when the market is in a position like this or even lower than this, the price of Bitcoin is bound to increase. Therefore the fact that in the Bitcoin market recent sentiment has moved towards smaller long positions is a thing that I care about very much”
