Sirwin
Sirwin

Bitcoin's new records in investment inflows

By Stormgain | Stormgain | 21 Feb 2024


Investment interest in Bitcoin is reaching new heights. The net inflow of investments into ETFs last week was a record-high $2.45 billion and $5.2 billion in total since the beginning of the year.

d4275c1dac32528b65f97da05115485cca2dd6830dc459bab97c1cda6720fc90.jpg

Freshly launched spot ETFs performed well, with BlackRock leading the way with $6.2 billion under management, followed by a product from Fidelity with $4.5 billion. Combined, the two funds beat Grayscale's $7 billion outflow (GBTC).

4a3076e0301c7e0e95ce8d2cd1d3106af0e2ceb20e058ef4b0eae4dbec4630ff.jpg

It's worth remembering that the outflow from GBTC is not related to the investment appeal of the cryptocurrency but is caused by a significant discount on the shares against the underlying asset in 2023 and increased fund management fees if compared to competitors. The reduction in GBTC's 'blood-letting' is a positive factor.

584fdb31db394d07acd8cd3249cf4534cc5ed24813f1075eae591bcee1bbe48f.jpg

The growth of open interest (the total volume of all open positions) in futures on the Chicago Mercantile Exchange (CME) to $6.8 billion was another record for Bitcoin. Like the growth of inflows into ETFs, this indicates increased interest in the cryptocurrency among institutional investors.

0f9cf8b615df7b72090779435cb0618f906d9f8a394853fcb2c40e50b9d083f5.jpg

According to CryptoQuant, over 70% of all Bitcoin investments in recent weeks have been generated by US ETFs. As a result, the share of US capital by market depth has increased from an average of 40% in 2023 to 50%. And the indicator increased from $454 million to $539 million in 2024.

For reference, market depth is the total volume of open orders from the current price in both directions (in this case, by 2%). The greater the indicator is, the more resistant the asset is to market manipulations and the more restrained volatility is.

340022a74413378bd1386a9e65895ca207de6a0077d48071aaeec02e7dd46123.jpg

This surge of interest has led to Bitcoin's 22% growth in 2024. In addition, most forecasts predict a new all-time high and reaching the six-figure level as early as this year.

ea79008f3d84b951985bde30f1c11a26ddade5051882907d350feea5a2c12701.jpg

On 19 February, former US intelligence official Edward Snowden called Bitcoin the most significant achievement in the history of money.


StormGain Analytical Group
(platform for trading, exchanging and storing cryptocurrency)

How do you rate this article?

18


Stormgain
Stormgain

StormGain is a crypto trading platform for everyone. It’s a convenient solution for those who want to profit from either the growth or decline of the cryptocurrency market and from long-term investments in crypto assets.


Stormgain
Stormgain

StormGain is a crypto trading platform for everyone. It’s a convenient solution for those who want to profit from either the growth or decline of the cryptocurrency market and from long-term investments in crypto assets. Available on any device, StormGain allows you to start trading the most popular and most capitalised coins with a multiplier of up to 200x, or you can just buy and hodl crypto.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.