The cryptocurrency market saw a substantial influx of funds last week, with a reported $1.18 billion flowing into digital asset investment products. CoinShares noted this important activity in its latest report due to the timely launch of the Bitcoin ETF. But he noted that inflows did not surpass the record of $1.5 billion set during the launch of the Bitcoin futures ETF in October 2021.
Foreign exchange trading volume reached a record $17.5 billion, thanks to the debut of the BTC ETF. This figure contrasts with the 2022 weekly average of $2 billion. This increase in volume accounted for nearly 90% of daily trading on exchanges, up from a range of 2% to 10%, CoinShares noted.
Bitcoin-Dominated Fund Flows
Bitcoin dominated the entry, receiving $1.16 billion, which is a notable 3% of its total assets under management (AuM). Other cryptocurrencies also recorded inflows: Ethereum received $26 million, XRP $2.2 million, and Solana $0.5 million.
Blockchain stocks were not far behind, witnessing huge inflows of $98 million. This increase brought total receipts over the past seven weeks to an impressive $608 million.
Impact of recently launched ETFs
The potential impact of Bitcoin ETFs is currently being considered. However, some experts anticipated it would reshape the flow of retail funds into the sector. Bitcoin advocate and author Vijay Boyapati believes that the approval of these ETFs could unlock large amounts of retail capital in Bitcoin.
Hedge fund manager James Lavish cited Bloomberg research that noted that the total trading volume of the ten ETFs soared to $7.85 billion.
The total trading volume of the ten ETFs launched this week was $7.85 billion.
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โ James Lavish (@jameslavish) January 15, 2024
This influx of funds into digital assets therefore indicates a positive trend. The trading volumes signify a positive shift towards the maturation of the digital asset market.
At the time of writing, Bitcoin's 24-hour trading volume has increased by almost 20%. According to CoinMarketCap figures, the volume has reached $21.6 billion. With increased investor interest and increased market activity in the ETF space, the price of the king coin has fallen below the crucial $43,000 level.
Also read: Bitcoin ETF approval: Why is it a topic of debate?
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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