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  • Crypto Investment Products See Record $2.2 Billion Inflows—Is The Bull Run Here?

    Crypto Investment Products See Record $2.2 Billion Inflows—Is The Bull Run Here?


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    The latest weekly digital asset fund flow report from CoinShares has revealed that last week, crypto asset investment products saw roughly $2.2 billion in net inflows globally, marking the largest inflow since July.

    This rise in inflows comes amid the gradual recovery of top crypto assets last week, with the majority now reclaiming major highs and registering nearly double-digit gains over the past 7 days.

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    Who Led the Charge?

    Bitcoin-based products were the standout beneficiaries of last week’s inflows. US spot Bitcoin exchange-traded funds (ETFs) added $2.1 billion, with BlackRock’s IBIT ETF alone generating over $1.1 billion.

    The cumulative inflows for these Bitcoin ETFs, which began trading in January, now stand at $21 billion. These funds have grown to manage a record $66 billion in assets under management, highlighting their significant role in the market.

    BTC price is moving upwards on the 2-hour chart. Source: BTC/USDT on TradingView.com

    Notably, the renewed confidence in Bitcoin products mirrors earlier this year’s positive sentiment. Last week’s inflows were the largest since March, when US spot Bitcoin ETFs saw $2.6 billion as Bitcoin reached its all-time high above the $73,000 price mark.

    This strong demand suggests that investors remain bullish on Bitcoin’s long-term prospects, despite recent market fluctuations. While Bitcoin stole the spotlight, other cryptocurrencies also experienced inflows last week although way lesser than that of BTC.

    Crypto asset fund flows.
    Crypto asset fund flows.

    Ethereum-based products attracted $58 million in net inflows, while Solana, Litecoin, and XRP-based funds saw smaller inflows of $2.4 million, $1.7 million, and $700,000, respectively.

    However, multi-asset investment products did not fare well, experiencing net outflows of $5.3 million, ending a 17-week streak of consecutive inflows.

    What Prompted The Surge In Crypto Inflow?

    According to CoinShares, this surge in inflows is tied to growing optimism about the upcoming US elections, with a potential Republican victory driving investor sentiment.

    Many believe that a Republican administration would favor the digital asset market more favorably, leading to an increase in investor confidence and positive price momentum. James Butterfill, Head of Research at CoinShares, particularly noted:

    We believe this renewed optimism stems from growing expectations of a Republican victory in the upcoming US elections, as they are generally viewed as more supportive of digital assets.

    Notably, Butterfill, reiterated these views, adding that trading volume for these investment products surged by 30% last week. Total assets under management (AUM) for crypto funds are now nearing the $100 billion mark on a global scale, highlighting the substantial interest in digital assets.

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    However, while US-based funds thrived, investment products in other countries such as Canada, Sweden, and Switzerland experienced net outflows, indicating a more polarized global market.

    Crypto asset fund flows by region. | Source: CoinShares
    Crypto asset fund flows by region.

    Featured image created with DALL-E, Chart from TradingView

    Samuel Edyme

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  • Asset outflows from crypto funds reach $500m in the last week

    Asset outflows from crypto funds reach $500m in the last week


    Digital asset investment products saw significant outflows last week, totalling $500 million.

    Analytics company CoinShares presented a report on the flow of funds in investment products based on cryptocurrencies from Jan. 20 to Jan. 26, 2024. According to available information, Grayscale Investments’ spot Bitcoin (BTC) ETF played a central role in the report. Over the week, the outflow of funds from the crypto fund exceeded $2.2 billion. At the same time, the total amount of withdrawn assets crossed the $5 billion mark.

    Source: CoinShares

    At the same time, the investment product of financial giant BlackRock continues to receive significant infusions, analysts say. Over the past week, the influx of funds amounted to $744 million. In second place in this indicator is the crypto fund of Fidelity Investments, which received financial injections of $643 million.

    In total, spot Bitcoin ETFs recorded an inflow of $1.84 billion. Moreover, since their launch on January 11, 2024, crypto funds have received infusions of $5.94 billion.

    At the regional level, the main outflow occurred in the USA ($409 million), Switzerland ($60 million) and Germany ($32 million). A net inflow of assets was observed only in Brazil – $10.3 million and in France – $100,000.

    Analysts note that due to spot Bitcoin ETFs, the main movement of funds during this period was associated with the first cryptocurrency. This asset accounts for an outflow of $479 million. At the same time, the inflow from short Bitcoin positions amounted to $10.6 million.

    At the same time, Ethereum (ETH)-based exchange products saw an outflow of $39 million. Most crypto funds based on other altcoins also lost funds in varying amounts.

    Last week, CoinShares analysts said that capital inflows into cryptoy investment products totaled $21 million, with issuers with higher fees suffering since the launch of spot Bitcoin ETFs in the United States on Jan. 10, 2024. Thus, the outflow of funds from such funds amounted to $2.9 billion. $4 billion were invested in the new instrument.


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    Anna Kharton

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  • Crypto investment products get $1.18b inflows amid spot Bitcoin ETF launch

    Crypto investment products get $1.18b inflows amid spot Bitcoin ETF launch

    The influx of investment products into digital assets amounted to $1.18 billion.

    Despite the launch of the Bitcoin ETF, capital inflows of $1.18 billion did not break the October 2021 record of $1.5 billion, according to a CoinShares report.

    At the same time, trading volumes have broken records, with trading volume of $17.5 billion last week, the highest ever, compared with an average of $2 billion per week in 2022. These trading volumes accounted for almost 90% of the daily trading volumes on trusted exchanges on January 12.

    Geographically, experts added that in the United States last week there was an inflow of funds in the amount of $1.24 billion. Countries such as Germany, Canada and Sweden recorded an outflow. Analysts believe that this distribution of funds occurred due to the desire of traders to switch from Europe to the United States.

    Bitcoin (BTC) inflows were $1.16 billion, Ethereum (ETH) inflows were $26 million, and XRP inflows were $2.2 million. Solana (SOL) was a notable exception, receiving just $0.5 million in inflows last week.

    “Blockchain equities also saw large inflows totaling $98m, bringing total inflows over the last seven weeks to $608m.”

    CoinShares report

    In the period from Jan. 1 to Jan. 5, the inflow of funds into crypto funds amounted to $151 million. Analysts also emphasized that the total inflow of funds since the trial between Grayscale and the SEC reached $2.3 billion.


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    Anna Kharton

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  • Bitcoin 2024 Forecast: From $60,000 To $500,000, Top Experts Share Bold Predictions

    Bitcoin 2024 Forecast: From $60,000 To $500,000, Top Experts Share Bold Predictions

    As the crypto market marches into 2024, various industry experts and financial analysts have recently cast their respective Bitcoin (BTC) predictions for the year.

    Among the voices offering insights, Mark Mobius of Mobius Capital Partners LLP stands out for his historically accurate predictions.

    Having correctly forecasted Bitcoin’s fall to $20,000, Mobius now envisions a climb to $60,000 by the year’s end. This optimism is further mirrored by Youwei Yang, chief economist at crypto mining firm Bit Mining, who projects a high of $75,000 for Bitcoin in 2024.

    Yang’s predictions hinge on a combination of the upcoming Bitcoin “halving” event, which is expected to constrain supply, and the potential inflow of institutional investments following a spot ETF approval in the US.

    The Catalysts Behind The Predictions

    The notion of a spot Bitcoin ETF approval in the US is a central theme in these bullish forecasts. The expectation of such an event has stirred excitement within the crypto community, drawing parallels to similar financial instruments and their impact on associated markets.

    James Butterfill, head of research at CoinShares, believes that a spot ETF approval in the US would mark a “significant change” in the digital asset landscape, potentially integrating cryptocurrencies more closely with traditional financial markets. As for the prediction, Butterfill noted:

    Estimations suggest that a 20% investment increase from current assets under management (around US$3 billion) could potentially propel Bitcoin prices to US$80,000.

    Butterfill additionally pointed out that potential interest rate reductions by central banks might significantly contribute to an increase in Bitcoin’s value.

    Bitcoin (BTC) price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

    2024 Bitcoin Predictions above $100,000

    Raising the prediction bar, Antoni Trenchev, co-founder of the cryptocurrency exchange Nexo and a well-known Bitcoin advocate, maintains his prediction that Bitcoin could soar to $100,000 in 2024. Despite initially projecting this target for 2022, Bitcoin’s price took a downturn instead of hitting the anticipated high.

    Reaffirming his stance, Trenchev attributes his renewed $100,000 forecast for 2024 to the upcoming Bitcoin halving and the possible green light for several spot Bitcoin ETFs in the US. Trenchev anticipates that these two factors will act as a dual catalyst, driving Bitcoin’s value to the $100,000 mark, with prospects of even higher peaks in 2025.

    Trenchev, however, cautions about the volatile journey towards this target, predicting fluctuations and significant dips along the way.

    In addition to Trenchev’s projections, Standard Chartered and University of Sussex finance professor Carol Alexander also envisions Bitcoin potentially hitting $100,000 in 2024. Alexander suggests this is contingent on the capacity of market maker algorithms from major financial institutions like Blackrock and Fidelity to moderate market volatility.

    Echoing these sentiments, Matrixport, a firm specializing in crypto financial services, projects that Bitcoin will hit $125,000 by the end of the year. The firm noted:

    Based on our inflation model, the macro environment is expected to remain a robust tailwind for crypto. Another decline in inflation is anticipated, prompting the Federal Reserve to likely initiate interest rate cuts. Combined with geopolitical crosscurrents, this healthy dose of monetary support should push Bitcoin to new highs in 2024.

    Venture capital firm CoinFund offers one of the most ambitious predictions, with managing partner Seth Ginns forecasting Bitcoin’s value to range between $250,000 and $500,000 in 2024.

    Ginns attributes this potential surge to factors like the declining correlation with the dollar and real yields, the anticipated impact of newly launched BTC spot ETFs in the US, and the excitement over possible ETH spot ETFs.

    Featured image from Unsplash, Chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    Samuel Edyme

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