CoinShares reported that digital asset funds have attracted over $1 billion in net inflows this year, with the majority of the capital directed towards BTC-focused investments.
Bitcoin (BTC) investment fund holdings have reached an all-time high, riding the wave of the token’s ongoing surge, fueled in part by optimism surrounding the imminent approval of a spot exchange-traded fund (ETF).
According to investment advisory firm ByteTree, token holdings surged to 863,434 this week, surpassing the previous record high set in April 2022. In the past month, these funds have accumulated approximately 22,100 additional bitcoins.
“It’s no surprise that the price has shown remarkable strength recently,” remarked Charlie Morris, founder of ByteTree.
Digital asset management firm CoinShares reported a substantial influx of fresh capital into broader crypto funds over the past few weeks, with a total of $767 million in net inflows. This marks the highest level of inflows over a six-week period since the 2021 bull market.
Additionally, James Butterfill, the Head of Research at CoinShares, observed on Friday that inflows into digital asset funds for the year have surpassed the $1 billion mark.
Digital Assets, as of yesterday, just surpassed US$1bn of inflows this year so far, as sentiment continues to improve. pic.twitter.com/7qJLPnULrD
— James Butterfill (@jbutterfill) November 10, 2023
Naturally, Bitcoin remains the primary catalyst for these inflows, with investors pursuing surging prices in anticipation of the imminent approval of several spot Bitcoin ETFs.
In a recent interview with CoinDesk, Matt Hougan, the Chief Investment Officer at Bitwise Asset Management, expressed the view that there is still a considerable way to go before the pricing of spot ETF approval is fully reflected in the market. Despite the recent influx of news, Hougan believes that the majority of financial advisors maintain the belief that a spot ETF won’t be approved until 2025 or beyond.
BTC reached an 18-month high of $37,960 earlier this week, marking a 39% increase over the past month and a remarkable 125% year-to-date gain. Presently, it is trading at $37,300.
