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Bitcoin ETF Optimism Fuels Record Weekly Inflows Amid ‘Greed’ Market Sentiment

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As Bitcoin ETF optimism ignites, investors flock to the market, leading to the largest weekly inflows since July 2022, indicating a growing appetite for digital assets despite concerns over the market’s ‘Greed’ territory.

Institutional investors are once again showing interest in the cryptocurrency market, as Bitcoin’s price reached its highest point in 2023. According to a report from CoinShares, digital asset investment products received inflows of $326 million in the week ending October 27. This surge in interest is mainly driven by the optimism surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission.

Although this weekly inflow is only the 21st largest on record, it indicates a growing belief that a spot-based ETF will be approved in the coming months. The U.S. accounted for only 12% of the inflows, with Canada, Germany, and Switzerland leading the way. Asia also saw significant inflows, with $28 million entering the region.

Bitcoin received the majority of investments, with $296 million flowing into BTC-related products, representing 90% of last week’s total inflows. Solana (SOL) also attracted institutional interest, with nearly $24 million in inflows. On the other hand, Ether (ETH) experienced outflows of $6 million, continuing its streak of negative sentiment.

The total assets under management in digital asset investment products now stand at $37.8 billion, the highest since May 2022. This indicates a growing confidence in the cryptocurrency market among institutional investors.

In another sign of the changing landscape, the Chicago Mercantile Exchange (CME) now ranks second in terms of notional open interest on the list of Bitcoin futures exchanges, just behind Binance. The CME’s open interest reached $3.58 billion, representing 25% of the Bitcoin futures market share.

The Crypto Fear & Greed Index has also shifted into “Greed” territory after being in neutral territory for the past month. This indicates a growing positive sentiment and confidence in the cryptocurrency market among retail investors.

It is important to note that the views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made efforts to ensure accuracy, but neither Kitco Metals Inc. nor the author can guarantee it. This article is for informational purposes only and should not be considered as financial advice.

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