The action was a break from what had been a record seven-week string of inflows.
Crypto Funds Weekly Inflows Surge to Record of $2.7B
Bitcoin remained the focus of investors seeing $2.8 billion worth of inflows.
Bitcoin ETFs See Record $2.4B Weekly Inflows; BlackRock’s IBIT Leads: CoinShares
Inflows significantly accelerated last week, indicating increasing demand for new spot-based ETFs, CoinShares’ head of research James Butterfill said.
Bitcoin ETFs See $700M Net Inflows as BlackRock, Fidelity Gains Offset GBTC Outflows: CoinShares
New U.S. bitcoin ETFs have amassed $7.7 billion in funds since debut, offsetting the $6 billion outflows from incumbents, according to CoinShares data.
CoinShares Exercises Option to Buy Bitcoin ETF Provider Valkyrie to Add U.S. Arm
CoinShares said the decision is a direct result of the SEC’s approval of the listing of a spot bitcoin ETF.
Crypto Investment Products Saw $2.2B of Inflows in 2023: CoinShares
A mundane year of flows turned nicely higher in the final quarter of last year as excitement rose surrounding spot bitcoin ETFs.
Bitcoin’s 2024 Forecast: From $60,000 To $500,000, Top Experts Share Bold Predictions
As the crypto market marches into 2024, various industry experts and financial analysts have recently cast their respective Bitcoin (BTC) predictions for the year.
Among the voices offering insights, Mark Mobius of Mobius Capital Partners LLP stands out for his historically accurate predictions.
Having correctly forecasted Bitcoin’s fall to $20,000, Mobius now envisions a climb to $60,000 by the year’s end. This optimism is further mirrored by Youwei Yang, chief economist at crypto mining firm Bit Mining, who projects a high of $75,000 for Bitcoin in 2024.
Yang’s predictions hinge on a combination of the upcoming Bitcoin “halving” event, which is expected to constrain supply, and the potential inflow of institutional investments following a spot ETF approval in the US.
The Catalysts Behind The Predictions
The notion of a spot Bitcoin ETF approval in the US is a central theme in these bullish forecasts. The expectation of such an event has stirred excitement within the crypto community, drawing parallels to similar financial instruments and their impact on associated markets.
James Butterfill, head of research at CoinShares, believes that a spot ETF approval in the US would mark a “significant change” in the digital asset landscape, potentially integrating cryptocurrencies more closely with traditional financial markets. As for the prediction, Butterfill noted:
Estimations suggest that a 20% investment increase from current assets under management (around US$3 billion) could potentially propel Bitcoin prices to US$80,000.
Butterfill additionally pointed out that potential interest rate reductions by central banks might significantly contribute to an increase in Bitcoin’s value.
2024 Bitcoin Predictions above $100,000
Raising the prediction bar, Antoni Trenchev, co-founder of the cryptocurrency exchange Nexo and a well-known Bitcoin advocate, maintains his prediction that Bitcoin could soar to $100,000 in 2024. Despite initially projecting this target for 2022, Bitcoin’s price took a downturn instead of hitting the anticipated high.
Reaffirming his stance, Trenchev attributes his renewed $100,000 forecast for 2024 to the upcoming Bitcoin halving and the possible green light for several spot Bitcoin ETFs in the US. Trenchev anticipates that these two factors will act as a dual catalyst, driving Bitcoin’s value to the $100,000 mark, with prospects of even higher peaks in 2025.
Trenchev, however, cautions about the volatile journey towards this target, predicting fluctuations and significant dips along the way.
In addition to Trenchev’s projections, Standard Chartered and University of Sussex finance professor Carol Alexander also envisions Bitcoin potentially hitting $100,000 in 2024. Alexander suggests this is contingent on the capacity of market maker algorithms from major financial institutions like Blackrock and Fidelity to moderate market volatility.
Echoing these sentiments, Matrixport, a firm specializing in crypto financial services, projects that Bitcoin will hit $125,000 by the end of the year. The firm noted:
Based on our inflation model, the macro environment is expected to remain a robust tailwind for crypto. Another decline in inflation is anticipated, prompting the Federal Reserve to likely initiate interest rate cuts. Combined with geopolitical crosscurrents, this healthy dose of monetary support should push Bitcoin to new highs in 2024.
Venture capital firm CoinFund offers one of the most ambitious predictions, with managing partner Seth Ginns forecasting Bitcoin’s value to range between $250,000 and $500,000 in 2024.
Ginns attributes this potential surge to factors like the declining correlation with the dollar and real yields, the anticipated impact of newly launched BTC spot ETFs in the US, and the excitement over possible ETH spot ETFs.
Featured image from Unsplash, Chart from TradingView
Bitcoin the ‘main beneficiary’ as crypto funds notch 10-week streak
Nearly $1.8 billion flowed into crypto investment products over the last 10 weeks, which hasn’t been seen since Bitcoin futures were launched in October 2021.
Inflows into Bitcoin investment products reach $1.5B year-to-date
Inflows into digital asset products rose for a ninth consecutive week, according to CoinShares.
Crypto Funds Attract Largest Weekly Inflow in 2023 as Bitcoin ‘Short-Sellers Capitulate’: CoinShares
Crypto investment funds last week attracted their largest inflow this year, extending their strongest run since the 2021 bull market as anticipation for a spot bitcoin [BTC] exchange-traded fund (ETF) continued to entice investors.
CoinShares Secures Option to Buy Valkyrie’s ETF Unit
The option, which expires at the end of March, gives the company a foothold in the U.S. ETF market as speculation whirls around the approval of a spot bitcoin product.
Crypto Fund Inflows of $293M Bring Yearly Total Above $1B: CoinShares
Ethereum related products witnessed the largest amount of inflows since August 2022.
Bitcoin Fund Holdings Hit All-Time High as Spot ETF Excitement Entices Crypto Investors
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Crypto Funds See $767M Six-Week Inflow, Best Since 2021 Bull Market: CoinShares
Bitcoin funds attracted most of the demand, while ether funds saw their largest inflows since August 2022.
Crypto funds see largest weekly inflows in more than a year: CoinShares
Crypto exchange-traded products saw $326 million in inflows during the week ending Oct. 27, according to a report from CoinShares.
Crypto Funds See Largest Inflow in 15 Months, With Bitcoin, Solana Leading Rally: CoinShares
Ether-based funds continue to fall out of favor, with outflows for the year now totaling $125 million.
Solana Rallies 26% in a Week Despite FTX Sale Fears; What’s Behind the Move?
Solana (SOL) jumped 11% Friday, and is one of the best performing crypto assets this year with a 170% gain.
Bitcoin Takes The Lead As Crypto Funds See Third Straight Week Of Inflows
Despite an array of uncertainties that have dotted the crypto horizon, recent data from Coinshares reveals a continuous faith in the sector, especially the foremost crypto giant, Bitcoin.
Digital asset investment products have seen a steady and positive trend, recording net inflows for three weeks. Amid these inflows, Bitcoin emerges as the most dominant, presenting a robust case for its standing in the market.
Bitcoin Steers The Inflow Wave
According to the latest report by CoinShares, Bitcoin-centric products experienced inflows amounting to $16 million just in the past week. This surge has swelled the year-to-date inflows, positioning them at $260 million. CoinShares’ data also shed light on inflows into Short-Bitcoin funds, which amounted to $1.7 million.
However, the report reveals that the recent data might not reflect the aftermath of the SEC’s decision not to appeal against the Grayscale legal challenge. James Butterfill, the Head of Research at CoinShares, noted:
It is worth noting that our data, which is as of Friday’s close, was unlikely to capture the positive news out of the US regarding the SEC not appealing the Grayscale legal challenge, potentially paving the way for a spot-based ETF in the US.
While Bitcoin held its ground, other cryptocurrencies also showcased noteworthy movements. Solana’s investment products added roughly $3.7 million, building upon the $24 million from the previous week.
XRP maintained momentum, recording its 25th week of positive inflows with an additional $420,000. Butterfill highlighted the continuous support from the “investment community” for XRP, especially in light of the recent “successful legal challenges” against the US Securities and Exchange Commission (SEC).
However, it wasn’t all sunshine and roses. Ethereum funds witnessed a setback, with outflows of $7.4 million. This seemed to neutralize most inflows after the launch of six Ethereum futures exchange-traded funds (ETFs) the previous week.
Butterfill pointed towards potential “protocol design concerns” as a plausible reason. Other digital assets such as Litecoin, Chainlink, and Tezos also witnessed minor outflows of $280,000, $310,000, and $250,000, respectively.
Global Inflow Dynamics
Regarding the global distribution of these inflows, Germany stood out, accounting for the bulk of the week’s inflows with $16.1 million. The US and Canada followed suit, with inflows of $2.1 million and $3.5 million respectively.
Interestingly, Sweden was the only European nation to witness an outflow of $7.5 million. Butterfill states that despite this positive net inflow trend, “trading volumes remain 27% below the 2023 average.”
Regardless, Bitcoin, which led the pack in last week’s inflow, experienced a dramatic shift in recent hours. Specifically, the asset witnessed a swift surge above $30,000, propelled by an unsubstantiated rumor by Cointelegraph about the US Securities and Exchange Commission (SEC) approving a spot BTC ETF. The regulator debunked the rumors.
However, the crypto quickly retraced its steps once the rumor was debunked, particularly by a FOX Business reporter.
BlackRock has just confirmed to me that this is false. Their application is still under review. https://t.co/XIfIWZ0Ule
— Eleanor Terrett (@EleanorTerrett) October 16, 2023
At the time of writing, Bitcoin is trading at $28,049, still exhibiting bullish behavior with a 4.3% increase in the last 24 hours.
Featured image from Unsplash, Chart from TradingView
Crypto investment products see largest inflows since July — CoinShares
Cryptocurrency investment products saw inflows for the second consecutive week, totaling $78 million, according to CoinShares.
CoinShares-owned Komainu secures crypto custodian registration in UK
Komainu is increasing its presence in the U.K. after agreeing with authorities to store crypto seized during local investigations in 2021.