Key Points
- The cryptocurrency market has experienced a $1.44 Billion surge, primarily driven by Bitcoin and Ethereum.
- Increased inflows are attributed to institutional investments through spot ETFs, with Bitcoin recording the highest inflow.
The cryptocurrency market has recently seen a significant surge of $1.44 Billion. This increase was primarily led by Bitcoin and Ethereum.
This increase in market value has been driven by the approval of BTC spot ETFs in January and anticipated ETH spot ETFs, which have captured the attention of investors.
Increased Inflows and Market Volatility
Despite market fluctuations, the crypto industry continues to attract investors, with increased investment among existing positions and new entrants.
Data from Coinshare indicates a net inflow of $1.4B over the past week in the crypto market. Inflows have reached a record high of $17.8B over the past year, surpassing the 2021 high record of $10.6B.
Bitcoin Leads with Record-High Inflow
Bitcoin has recorded the highest inflow on weekly charts at $1.35B. This rise is attributed to increased institutional investments in Bitcoin through spot ETFs.
For example, BlackRock’s IBIT recorded $117.25 after seven consecutive days of inflow, with a trading volume of $1.2B. Other major players such as Fidelity and BITB also experienced significant inflows.
However, Bitcoin short investments have seen a high outflow over the past week due to Germany government sales and Mt. Gox transactions.
Altcoins Rise
Despite Bitcoin’s dominance, altcoins like Ethereum and Solana are also experiencing significant growth. Ethereum, in particular, has seen an increased inflow of $72M over the last week, largely due to anticipation of an ETF launch.
Solana also saw an increase in inflows to $4.4M, a record high following months of decline. This trend indicates that investor interest in crypto is continually rising, despite increased market volatility.
With the anticipated approval of multiple Ethereum spot ETFs later this month and Solana ETFs filing, the altcoins and cryptocurrency market are expected to continue expanding.
