Originally published on: September 30, 2024
Bitcoin investment products saw a significant uptick in popularity among institutional investors during the past week, with over $1 billion flowing into crypto funds as BTC surged past $66,000.
The latest CoinShares report, released on Sept. 30, indicated that crypto asset investment products experienced their third consecutive week of inflows totaling $1.2 billion for the period ending Sept. 27.
Of the total inflows, Bitcoin investment products attracted the lion’s share, with $1 billion entering the market over the last seven days, accounting for approximately 87% of the total investment. Bitcoin funds also led in monthly performance, accumulating $1.1 billion in inflows in September and pushing total assets under management (AuM) to $74.6 billion.
In contrast, Ether investment products broke a five-week streak of negative flows, receiving $87 million in inflows. This marks the first significant influx since early August, although they have experienced outflows of $60 million month-to-date.
Overall, all crypto investment products received $1.2 billion in inflows last week, driving total AuM up by 6.2% to $92.7 billion.
CoinShares head of research James Butterfill attributed the surge in inflows to the anticipation of dovish US monetary policy and positive market sentiment. Alternative data monitoring sentiments around cryptocurrencies showed the Crypto Fear and Greed Index reaching its highest level since July 31, indicating an increase in market confidence.
Bitcoin’s recent 26.5% rally propelled the price to a local high of $66,840 before undergoing a slight correction to trade at $63,815. Analysts suggest that breaking above the $65,000 barrier could signify the end of a bearish market structure and pave the way for a bullish breakout.
As Bitcoin looks to regain its upward momentum, bulls will need to overcome significant resistance levels between $65,000 and $66,000, with further hurdles near the $68,000 psychological mark and the 2021 all-time high of $69,000.
It is crucial to note that this article does not offer investment advice. Readers are advised to conduct their own research and due diligence before making any investment decisions.
