Cryptocurrency Investment Products See Record $33.5 Billion Year-to-Date Inflows

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As an analyst with over two decades of experience in the financial industry, I must say that the current trend in cryptocurrency investment products is nothing short of remarkable. The record-breaking inflows this year, particularly the recent surge following Bitcoin’s new all-time high, paints a picture of a rapidly maturing market.

This year, cryptocurrency investment products have experienced an unprecedented influx of $33.5 billion, with more than $2.2 billion added in the last week. This surge comes during a bullish rally for the cryptocurrency market, causing Bitcoin‘s price to reach a fresh record high above $93,000.

Based on the latest report from CoinShares, the value of assets managed by cryptocurrency investment products has reached an all-time high of $138 billion, as continuous inflows continue to grow.

According to our recent report, we saw inflows totaling $3 billion during the first half of last week. However, when Bitcoin reached a fresh record high in price, it seems that many investors chose to cash in on these elevated prices, resulting in substantial outflows.

Conversely, investments tied to Bitcoin’s primary cryptocurrency brought in a substantial $1.48 billion, and those linked to Ethereum saw an inflow of approximately $646 million.

Investors experienced a net withdrawal of approximately $19.4 million from cryptocurrency platforms offering diverse holdings, while those specializing in Binance‘s BNB specifically saw withdrawals amounting to about $400,000. According to CoinShares’ report, since the initial interest rate cut in September, a total inflow of around $11.7 billion has been recorded.

The recent increase in activity seems to stem from a mix of easier monetary policies and the Republican Party’s complete victory in the latest U.S. elections.

According to a recent report by CryptoGlobe, it was disclosed by Wall Street heavyweight Goldman Sachs through a fresh SEC filing that they have substantially boosted their involvement with Bitcoin-based spot ETFs.

Through a recent 13F filing, this financial powerhouse on Wall Street disclosed an investment of approximately $710 million in several Bitcoin Spot ETFs. Among these holdings are 12.7 million shares in BlackRock’s iShares Bitcoin Trust (IBIT), which are valued at roughly $461 million.

The graph shows an impressive 83% rise compared to the last quarter, with Goldman holding approximately 6.9 million shares in the IBIT fund, worth roughly $281 million. Currently, Goldman ranks second among IBIT shareholders, surpassed only by Millennium Management who holds a substantial amount of around $844 million in IBIT.

Goldman Sachs has grown its investment in various well-known Bitcoin funds, with a 13% increase in Fidelity’s Wise Origin Bitcoin ETF (FBTC), an 116% boost in the Grayscale Bitcoin Trust (GBTC), and a 156% expansion in the Bitwise Bitcoin ETF (BITB).

Currently, the bank’s total holdings of FBTC are approximately $95.5 million, exceeding its investments in the Grayscale Bitcoin Trust, which amount to $71.8 million. The bank also owns around $59.7 million in the Invesco Galaxy Bitcoin ETF and about $22.5 million from Bitwise’s ETF. Additionally, it has smaller holdings of $3.1 million in the 21Shares’ Bitcoin ETF by Ark, as well as $791,000 in the ETF provided by WisdomTree.

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2024-11-19 02:37