Originally published on: September 30, 2024
Institutional investors continued to flock to Bitcoin exchange-traded products, with inflows surpassing $1 billion as BTC soared above $66,000, according to a recent CoinShares report.
The report, released on Sept. 30, revealed that crypto asset investment products experienced a third consecutive week of inflows totaling $1.2 billion for the period ending Sept. 27. The majority of these inflows, around $1 billion or 87% of the total, went into Bitcoin investment products. This surge in investment brought the total assets under management (AuM) for Bitcoin funds to $74.6 billion, with $1.1 billion coming in just during September alone.
Ether investment products also saw a turnaround, with $87 million in inflows breaking a streak of negative flows that had persisted for five weeks. Despite this positive development, the report noted that Ether still had outflows of $60 million month-to-date.
Overall, crypto investment products saw total inflows of $1.2 billion, contributing to a 6.2% increase in total AuM, which now stands at $92.7 billion.
James Butterfill, CoinShares’ head of research, attributed the high inflows to positive market sentiments fueled by expectations of dovish monetary policy in the US. Data from Alternative.me, an analytics platform for cryptocurrencies, supported this claim, showing that the Crypto Fear and Greed Index had reached its highest level since July.
Bitcoin’s recent rally, which saw a price surge of 26.5% to $66,840, marked a significant milestone. However, the price has since corrected to $63,815 at the time of publication. Analysts are closely watching key resistance levels, including the crucial $65,000 mark, as a potential breakthrough could signify a reversal in the current market structure.
For Bitcoin bulls, the next major hurdle lies between $68,000 and the 2021 all-time high of $69,000. With liquidity orders totaling over $342 million within this range, breaking through this barrier will be a pivotal moment for Bitcoin’s price movement.
As always, readers are reminded that this article does not constitute investment advice, and individuals should conduct their own research before making any financial decisions. Stay informed by subscribing to our Markets Outlook newsletter for critical insights on investment opportunities and trading strategies every Monday.
