Originally published on: September 30, 2024
As Bitcoin surged past $66,000, institutional investors poured over $1 billion into crypto funds, favoring Bitcoin exchange-traded products once again for their investment. According to CoinShares’ latest report released on Sept. 30, the total inflows into crypto asset investment products reached $1.2 billion for the week ending Sept. 27, marking the third consecutive week of significant inflows.
The report highlighted that a majority of the capital flowed into Bitcoin investment products, accounting for around $1 billion of the total inflows, representing approximately 87%. This influx of funds propelled the total assets under management (AuM) to $74.6 billion for Bitcoin funds, with $1.1 billion inflows in September alone.
Additionally, Ether investment products saw a notable turnaround with $87 million inflows, ending a five-week streak of negative flows. Despite this positive development, Ether products still have outflows of $60 million month-to-date.
Overall, all crypto investment products enjoyed inflows of $1.2 billion, resulting in a 6.2% increase in total AuM to $92.7 billion. CoinShares’ head of research, James Butterfill, suggested that the surge in inflows could be attributed to anticipation of dovish monetary policy in the US and positive market sentiments.
Market sentiment indicators further support this hypothesis, with the Crypto Fear and Greed Index hitting its highest level since July 31, signaling a shift towards ‘greed’ in the market sentiment compared to the previous month when it was dominated by ‘fear’.
Bitcoin’s recent rally of 26.5% led to a local high of $66,840 before a slight correction to $63,815 at the time of publication. Analysts are closely monitoring the crucial $65,000 level as breaking above it could reverse the bearish trend that has persisted since March.
For Bitcoin bulls, the next major hurdles are between $65,000 and $66,000 to secure the recovery, with a key resistance at the $68,000 psychological level and the 2021 all-time high of $69,000.
Please note that this article is for informational purposes only and does not constitute investment advice. Readers are advised to conduct their own research before making any investment decisions.
