Investor interest in Bitcoin-related investment products continues to soar, with last week seeing $133 million in inflows, accounting for 97% of the total amount of digital asset funds. This marks the third consecutive week of inflows for digital asset funds, accumulating a total of $470 million over the three-week period. The recent positive sentiment towards Bitcoin contrasts with the nine consecutive weeks of net outflows that preceded it.
CoinShares, a digital asset investment firm, reported these figures in its fund flows report. The surge in investor optimism can be attributed to the filing by BlackRock, the world’s largest asset manager, to launch a Bitcoin exchange-traded fund (ETF) in June. Other notable traditional finance institutions such as WisdomTree, Invesco, and Valkyrie have also followed suit, filing their own applications for Bitcoin-related investment products.
These developments have raised hopes that Bitcoin will gain mainstream acceptance among institutional investors, pending approval from the US Securities and Exchange Commission (SEC). Although the SEC initially deemed BlackRock’s filing as inadequate, the investment giant promptly updated and resubmitted the application with the necessary details.
BlackRock’s CEO, Larry Fink, recently expressed his views on Bitcoin in an interview with Fox Business, describing it as an “international asset” that could serve as a hedge against inflation and gold. Fink also highlighted the role of cryptocurrencies in digitizing gold and expressed BlackRock’s goal of making crypto more accessible and cost-effective for investors.
While Bitcoin-related funds experienced significant inflows, short-bitcoin investment products witnessed their 11th consecutive week of outflows, indicating that investors still favor Bitcoin over altcoins. Ethereum funds saw minor inflows of $2.9 million, but remain in a negative net flows position of -$63 million year-to-date. Additionally, short-Ethereum products experienced slight outflows of $0.3 million last week.
Overall, the recent surge in investor optimism and positive fund flows reflect the growing interest in digital assets and the potential for cryptocurrencies like Bitcoin to become a mainstream investment choice among institutional investors.
