In the first week of 2024, digital asset investment products, also known as exchange-traded products (ETPs), received inflows totaling $151 million, as reported by CoinShares. These recent inflows bring the cumulative amount since the conclusion of the Grayscale vs. SEC lawsuit to $2.3 billion.
This data regarding the flow of investments into digital assets suggests a bullish outlook for the cryptocurrency ecosystem, especially in anticipation of the potential approval of the first spot Bitcoin exchange-traded fund (ETF) in the United States. U.S.-based exchanges contributed 55% of the total investment inflow during the first week of 2024.
Bitcoin attracted the largest share of inflows, with $113 million, followed by Ether at $29.6 million. Notable altcoins that also saw significant inflows include Cardano ($3.7 million), Avalanche ($2 million), and Litecoin ($1.4 million).
Furthermore, there was a positive sign for Bitcoin as there were outflows from Bitcoin short positions, totaling over $1 million in the past week. This contradicts the earlier prediction that the potential approval of the BTC ETF could lead to a “buy the rumor, sell the news” scenario, as there have been notable outflows in recent weeks.
The Grayscale Bitcoin Trust also saw substantial trading activity on January 8, with nearly half a billion dollars traded, surpassing more than 99% of the 3,000 current ETFs in the market. On the same day, the Bitcoin price reached another yearly high, surpassing $46,000 and trading at $46,865 at the time of reporting.
For context, ETPs are financial instruments traded on regulated stock exchanges that allow investors to gain exposure to the price movements of an underlying cryptocurrency asset without actually owning the asset itself.
The beginning of the year has brought a bullish sentiment to the crypto community, with several key milestone events expected in 2024. Apart from the potential approval of the first spot Bitcoin ETF in the U.S., the Bitcoin halving is scheduled for April.
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