CoinShares warns that bitcoin market sentiment is steadily improving with the current demand for investment products.
According to the latest report from asset manager CoinShares, “sentiment is steadily improving with another week of inflows” into the bitcoin (BTC) and cryptocurrency derivatives market.
Digital asset investment products recorded capital inflows for the third consecutive week for a total of 15 million dollars (USD). This after six weeks in which departures prevailed, as the following graph shows.
However, it should be noted that this week’s inflows were lower than the previous one when they exceeded USD 43 million. Meanwhile, trading volumes in the market for this type of product remain 27% below the 2023 average.
Bitcoin investment products specifically accounted for $16 million in inflows last week. On the other hand, those based on the second most capitalized cryptocurrency, ether (ETH), experienced outflows of USD 7.4 million.
With these results, inflows so far in 2023 in Bitcoin products have risen to USD 260 million. This reflects a significant difference with investment products in the Ethereum cryptocurrency, which recorded exits of 111 million this year.
Beyond the outflows recorded by Ethereum derivatives and other altcoins, the large capital inflows into those of Bitcoin have caused the total market for digital asset investment products to see inflows of USD 194 million so far this year.
This scenario occurs as bullish expectations around bitcoin grow due to the possible approval of the first spot exchange-traded funds (ETF) of its currency and the approach of its halving.
Investors are focusing on bitcoin
Market attention, which briefly focused last year on Ethereum for its network upgrade called Merge, is currently focused on Bitcoin. This is despite the fact that at the beginning of this month, the first Ethereum futures ETFs were approved in the United States.
In the midst of this, as reported by CriptoNoticias, the asset manager ProShares has presented this week an ETH futures ETF that will give profits when the market is down.
CoinShares noted that the continued capital inflows into Bitcoin underscore the support of the investment community, especially considering the successful legal challenges against the United States Securities and Exchange Commission (SEC).
The judiciary, as well as members of Congress, have asked the SEC to re-review bitcoin spot ETF applications for baselessly rejecting them, which has generated excitement in the market.
Meanwhile, the price of bitcoin remains above USD 28,000 this week, far from the minimum of USD 25,000 that it reached last month, while ether does not leave USD 1,500, the minimum area it has had since March. Entities such as Standard Chartered Bank predict that ETH’s bullish momentum will return in the long term with its network upgrades.
What are digital asset investment products?
Digital asset investment products are financial instruments that allow you to have exposure to cryptocurrencies, mainly bitcoin, without acquiring them directly. Normally those who operate these vehicles are institutional or retail investors who are experts in these markets.
There are different types of products. Among the most popular are exchange-traded funds (ETFs), which track the performance of one or more cryptocurrencies in the spot (not yet approved in the United States) or futures markets.
