Crypto inflows totaled $151 million in the first week of 2024, with Bitcoin leading the way with $113 million in the past nine weeks.
Bitcoin inflows accounted for around 3.2% of the assets under management by investment companies ahead of expected inflows from spot Bitcoin exchange-traded funds (ETFs).
ProShares ETFs saw the biggest inflows of all major crypto investment companies at $72 million. It was followed by Coinshares Digital Securities, which brought in $18.6 million.
Will ETH Inflows Benefit From Crypto ETF Filings?
Crypto-related equities also saw a healthy start to the year, welcoming $24 million of new money amid hype around Bitcoin exchange-traded funds. Inflows since the conclusion of the Grayscale vs. SEC lawsuit now total $2.3 billion.
Ethereum, the second-largest cryptocurrency by market capitalization, ushered in $29 million. Several investment companies, including ARK Invest and VanEck, have filed to launch Ethereum spot ETFs, which could boost inflows later this year.
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The opposite end of the market saw Bitcoin short-sellers pulling $1 million from the market in the first week of 2024. Solana investors pulled $5.3 million from crypto funds.
The inflows in the first week of 2024 augur well for the rest of the month. In January last year, investments in crypto products totaled around $210 million. ProShares saw the largest inflows of $40 million, while the Valkyrie Bitcoin Miners ETF recorded a 100% gain.
Bitcoin ETF Applicants Jostle for Crypto Inflows
Standard Chartered estimated that anticipated Bitcoin ETFs could see $34 billion in inflows. The bank used the performance of the US-based SPDR Gold Shares ETF launched in 2004 to arrive at the estimate. The bank’s upside estimate is closer to $130 billion.
Spot Bitcoin ETF applicants, who expect a response from the US Securities and Exchange Commission soon, also offer predictions. VanEck expects $1 billion of inflows in the first few days after an ETF approval and $2.4 billion “within a quarter.” James Seyffart of Bloomberg Intelligence speculated what BlackRock’s alleged cash injection into new ETFs could mean for flows.
“My main thing is. I wouldn’t be all that surprised either way. I could see blackrock funneling massive massive amounts of capital into the ETF on like day 1 or two. I have my over/under for net flows at $10 billion in year 1.”
Galaxy Digital, who is partnering with Invesco to operate its ETF product, estimates ETFs will spur $14 billion worth of inflows in the first year of its launch. The Mike Novogratz-led company predicted the total addressable market size of US Bitcoin spot ETFs will be $24.4 trillion. Bitwise Asset Management thinks the ETF market could be worth $72 billion in five years.
Read More: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach
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Source: https://beincrypto.com/why-crypto-inflows-hit-151m-before-etf/