Bitcoin Records $1.16 Billion Inflow Amid Spot Bitcoin ETF Launch

The crypto market experienced a substantial influx of funds last week, with a reported $1.18 billion flowing into digital asset investment products. CoinShares noted this significant activity in its latest report due to the spot Bitcoin ETF launch. But it highlighted that the inflows didn’t surpass the record of $1.5 billion set during the launch of Bitcoin futures ETF in October 2021.

The trading volume for exchange products reached a record $17.5 billion, thanks to the BTC ETF debut. This figure stands against the 2022 weekly average of $2 billion. This surge in volume accounted for nearly 90% of the daily trading on exchanges, up from the range of 2% to 10%, CoinShares noted.

Bitcoin-dominated fund flows

Bitcoin dominated the inflow, receiving $1.16 billion, which is a notable 3% of its total assets under management (AuM). Other cryptocurrencies also saw inflows, with Ethereum receiving $26 million, XRP $2.2 million, and Solana $0.5 million.

Blockchain equities weren’t left behind, witnessing large inflows of $98 million. This surge brought the total inflows over the past seven weeks to an impressive $608 million. 

Impact of recently-launched ETFs

The potential impact of Bitcoin ETFs is currently under consideration. However, some experts anticipated that it would reshape retail fund flow into the sector. Bitcoin advocate and author Vijay Boyapati believes that the approval of these ETFs could unleash vast amounts of retail capital into Bitcoin.

Hedge fund manager James Lavish cited Bloomberg research that noted the total trading volume for the ten ETFs skyrocketed to $7.85 billion.

The total trading volume for the ten ETFs that launched this week was $7.85B

Whoa. pic.twitter.com/VF95q3IO2M

— James Lavish (@jameslavish) January 15, 2024

This influx of funds into digital assets thus indicates a positive trend. The trading volumes signify a positive shift toward the maturation of the digital asset market.

At the time of writing, Bitcoin’s 24-hour trading volume has surged by almost 20%. Based on CoinMarketCap figures, the volume has reached $21.6 billion. With increased investor interest and higher market activity in the ETF space, the king coin has seen a price dip below the crucial level of $43,000.

Also Read: Bitcoin ETF Approval: Why Is It a Matter of Debate?