In a recent report, digital asset fund manager CoinShares highlighted that the influx of cash into cryptocurrency funds, which has been driving up Bitcoin's price, may start to taper off.
In a recent report, digital asset fund manager CoinShares highlighted that the influx of cash into cryptocurrency funds, which has been driving up Bitcoin's price, may start to taper off. Last week alone, $646 million entered major funds focused on digital asset investment, pushing the total inflows for 2024 to a record high of $13.8 billion.
While Grayscale's Bitcoin Trust (GBTC) continued to experience outflows after its conversion to an exchange-traded fund (ETF) in January, investors showed interest in other Bitcoin-focused funds. BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund received new investments, indicating a continued appetite for Bitcoin exposure. Although Bitcoin remained the primary focus for investment inflows, CoinShares noted that investor enthusiasm for these products is starting to moderate.
However, as anticipated by experts, including CoinShares, the outflows from GBTC are expected to slow down. As investors redeem shares they were previously unable to sell when GBTC operated as a closed-end fund, the pace of outflows is likely to decrease. CoinShares' report also highlighted that while European crypto funds offering exposure to digital assets like Solana and Litecoin experienced inflows, Ethereum funds witnessed cash withdrawals for the fourth consecutive week.
Bitcoin is currently trading at $71,316, slightly below its all-time high of $73,737 reached in March. BTC gained 6.84% in the past week as the Bitcoin halving, set for April 20, is approaching.
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