Existing exchange-traded crypto funds are seeing high demand for crypto's. Last week, the net annual inflow totalled $260 million, while $326 million in investments came in during the same week.

This is primarily because institutional investors are interested in Bitcoin, which received $296 million or 90% of the total inflow volume. Solana is second with $24 million (we've previously covered the reasons behind the interest in this altcoin). In this environment, Ethereum is looking dull and continues to lose investments.

The spike in interest in Bitcoin is due to the increased chances that spot Bitcoin ETFs will be approved in the US before 10 January 2024. Last week, information emerged that ETF applicants had sent revised documents. This signals that a dialogue is taking place between market participants and the SEC.

The SEC also refused to appeal a court decision on Grayscale's claims. This greatly increases the likelihood that the trust fund will automatically convert to a spot ETF next year.

For these reasons, Bitcoin's price rose by 10% last week, consolidating around $34,000.

In contrast to the growth at the beginning of this year, market participants believe the chances of it continuing in Q4 are high. This is evident in the renewed outflow of coins from cryptocurrency exchanges since May, indicating that only a few market participants are willing to part with Bitcoin despite its higher price.

Bitcoin was recently praised by one of the best hedge fund managers in the world, Stanley Druckenmiller, whose average annual return over 30 years of fund management is 30%, surpassing the results of even Warren Buffett. Druckenmiller said:

Young people look at [Bitcoin] as a store of value... It's a brand. So, I like [Bitcoin and gold]. I don't own any Bitcoin, to be frank, but I should.

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