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Bitcoin Dominates Investment Market as Spot ETF Excitement Grows: CoinShares

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As the excitement surrounding spot ETFs continues to grow, Bitcoin remains the undisputed king of investments, capturing the lion’s share of attention and capital in the market, according to CoinShares.



Investments into institutional crypto products have remained positive for the fourth consecutive week, according to a recent report by CoinShares. These investments refer to exchange-traded products that track cryptocurrencies offered by various companies, including Grayscale, 21shares, and Proshares.

In the past week, the total investment in these products amounted to $66 million, with the majority of it, 83.7% or $55.3 million, directed towards Bitcoin. Swiss-based firm 21SharesAG saw the largest inflows of $45.5 million, followed by German digital securities provider ETC Group with $12.2 million.

However, the ProShares Bitcoin Strategy ETF, based in the U.S., experienced outflows of $10.7 million, resulting in a net monthly total of $20.1 million in outflows. Despite this, the futures-based Bitcoin product has seen significant inflows of $238 million in 2023.

James Butterfill, the head of research at CoinShares, believes that the positive inflows are likely linked to excitement over a potential spot Bitcoin ETF launch in the U.S.

When comparing the recent four-week investments to those observed in June, following BlackRock’s spot Bitcoin application announcement, the latest investments have been relatively low. In June, investments amounted to approximately $807 million, while the past four weeks saw just $179 million in inflows. Butterfill suggests that this lower inflow is indicative of investors adopting a more cautious approach this time.

Recently, several Bitcoin ETF applicants in the U.S., including BlackRock, Fidelity, and Ark Invest, made amendments to their filings, which experts interpreted as positive developments.

Solana continues to be the preferred altcoin investment choice after Bitcoin, accounting for 23.4% of the total weekly inflows at $15.5 million. In the past month, Solana-based products attracted inflows of $43 million, contributing to a year-to-date total of $74 million. On the other hand, Ethereum was the only altcoin to witness outflows of $7.4 million, potentially due to continued concerns over the network.

Overall, institutional investors are showing ongoing interest in crypto products, with Bitcoin and Solana being the top choices. The cautious approach towards investments and the anticipation of a spot Bitcoin ETF launch continue to shape the market.

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