After a challenging decade of attempts, the US Securities and Exchange Commission (SEC) finally approved Bitcoin spot ETFs. These products allow retail clients and traditional financial institutions to access the price of Bitcoin through standard brokerage applications without relying on crypto exchanges.
This enthusiasm is reflected in altcoin prices, as data indicates a notable influx of capital into the cryptocurrency market.
Spot Bitcoin ETF Frenzy Drives Capital Inflow
At the beginning of the year, the amount of US dollar ERC20 stablecoins on exchanges was approximately $18 billion. But as of this week, it has increased to $20 billion.
According to the latest CryptoQuant analysisThis influx of $2 billion indicated the flow of capital into the cryptocurrency market, impacting current altcoin prices.
The excitement surrounding Bitcoin spot ETFs is expected to contribute to the continued influx of capital into the overall ecosystem. Despite a downward trend since late 2022, this pattern has persisted into 2023.
It should be noted that this trend reverses from 2024, indicating a possible increase in risk appetite. This change may ultimately benefit the entire digital asset sector.
Bitcoin Spot ETF Sees $4 Billion Trading Volume Debut
In addition to the increased capital inflow into the market, the 11 spot Bitcoin ETFs generated trading volume. excessive 4 billion dollars after its debut. Grayscale dominated the majority of this commercial activity at $1.9 billion.
Behind the DCG subsidiary were BlackRock and Fidelity Investments, with $942 million and $628 million in trading volume, respectively.
Coinbase Bitcoin over-the-counter (OTC) trading hit a record high of $7.7 billion on January 11. This increase coincides with a notable increase in overall cryptocurrency exchange trading volumes, reaching $52 billion, the highest level since March 2023.
Meanwhile, a recent report from Standard Chartered Bank foretold that Bitcoin ETFs could potentially attract inflows of between $50 billion and $100 billion by 2024. This anticipated influx is seen as a crucial catalyst for the potential rise in Bitcoin value, with projections reaching an impressive $200,000 by the end of 2025.
Free Binance $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off fees on Binance Futures your first month (terms).
