In a recent report by asset manager CoinShares, it was revealed that crypto investment products took on nearly $2 billion in inflows, extending a five-week run to over $4.3 billion. Bitcoin led the investment activity with over $1.97 billion in inflows, while Ether saw its best week since March with nearly $70 million in inflows. This surge in investment activity comes as trading volumes in exchange-traded products (ETPs) rose to $12.8 billion for the week, up 55% from the previous week.
The increase in buying activity for spot bitcoin exchange-traded funds (ETFs) in the U.S. has been notable since mid-May, following a period of stagnant activity in April. Inflows into these products have picked up, with BlackRock’s IBIT becoming the largest bitcoin ETF last week, accumulating over $20 billion worth of the asset since its January issuance. CoinShares analyst James Butterfill noted that inflows were seen across almost all providers, with a slowdown in outflows from incumbents. This positive price action has also led to total assets under management rising above $100 billion for the first time since March this year.
The recent approval of key regulatory filings tied to ETH ETFs by the U.S. Securities and Exchange Commission (SEC) has also been a significant development for the crypto market. The SEC approved documents for eight ETFs, including those from VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21Shares, Invesco Galaxy, and BlackRock, for listing on major exchanges such as Nasdaq, NYSE Arca, and Cboe BZX. This milestone marks a positive step towards mainstream adoption of Ethereum and other cryptocurrencies.
Traders and analysts are optimistic about the future of Ether and expect inflows into ETH products to continue in the coming months. Some traders anticipate a rally towards the end of the year, with Chief Investment Officer at Tyr Capital, Ed Hindi, predicting that $5-10 billion of fresh capital could be channeled through ether products in the short to medium term. This influx of capital could potentially fuel an end-of-year rally in ETH and its ecosystem, leading to new record highs. Hindi also pointed out that with ETH now being deflationary, a price target of $10,000 in 2024 is now a reasonable goal.
The positive outlook for Ether is also supported by the surprise SEC decision to allow spot ether ETFs, which has sparked buying activity in ETH products. Some traders believe that the asset could reach the $10,000 price level by 2024, given the current market trends and regulatory developments. With expectations of continued inflows into ETH products and a potential end-of-year rally, the future looks bright for Ethereum and its ecosystem.
Overall, the recent surge in investment activity in crypto products, particularly Bitcoin and Ether, has been fueled by positive market sentiment, regulatory approvals, and increased buying activity. The approval of ETH ETFs by the SEC marks a significant milestone for the cryptocurrency market and has led to renewed interest in Ethereum and its ecosystem. Traders and analysts are optimistic about the future of Ether, with expectations of a potential rally towards the end of the year and a price target of $10,000 in 2024. This positive momentum signals a bullish outlook for the crypto market and could lead to further growth and adoption in the coming years.
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