Bitcoin-related investment products are currently experiencing a surge in investor interest, largely fueled by the growing anticipation of a spot Bitcoin exchange-traded fund (ETF) approval in the United States.
According to a December 4 report by James Butterfill, the head of research at CoinShares, there has been a significant inflow of $1.76 billion into crypto products over a 10-week span. This marks the largest inflow for such a period since October 2021, coinciding with the launch of Bitcoin futures. CoinShares’ weekly reports indicate that of this influx, approximately $1.44 billion was directed towards Bitcoin investment products, during which time the price of Bitcoin rose from $26,600 to $37,700.
For the week ending December 1, the total inflow into crypto investment products reached $176.3 million. Bitcoin investment products were the primary recipients, attracting $132.8 million in that week alone. Meanwhile, investment products based on Ether (ETH) and Solana (SOL) also saw significant inflows, totaling $30.8 million and $4.3 million, respectively.
This increased investment activity comes at a time when the potential approval of spot Bitcoin ETFs in the United States seems more likely. The anticipation surrounding these approvals is believed to be a key driver of the recent inflows.
James Edwards, a cryptocurrency analyst at fintech firm Finder, noted in an interview with Cointelegraph that some Bitcoin futures-based products might be benefiting from the excitement over the potential ETF approvals. He observed that institutional investors appear to be speculating on the approval, as evidenced by the increased inflows into existing Bitcoin futures ETFs like ProShares BITO, which have recently surpassed their 2021 records.
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