There has been a $12 billion surge in the markets so far in 2019

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POSITIVE
The cryptocurrency investment landscape has experienced a notable surge in the early months of 2024, setting new records for capital inflows into crypto funds.
Data from CoinShares reveals that more than $12 billion has been injected into crypto investment products globally in just the first quarter of the year.
This figure signifies a substantial increase in investor confidence and interest in digital assets and surpasses the total inflow recorded for the entirety of 2021, which stood at $10.6 billion.
This uptick in investment activity underscores the growing mainstream acceptance of cryptocurrencies.
It highlights the pivotal role of new financial products, particularly the US spot Bitcoin ETFs, in attracting significant capital to the sector.
Record Volume And AUM GrowthAccording to Coinshares, this week alone witnessed inflows nearing $1.8 billion into global crypto exchange-traded funds (ETFs) and exchange-traded products (ETPs).
This influx of capital eclipsed the previous annual record, with a substantial portion of these funds channeled into newly launched spot Bitcoin ETFs in the United States.
Digital Assets ETFs/ETPs have smashed the 2021 record, with inflows following the last few days now sitting at US$12bn ytd compared to US$10.6bn for the whole of 2021. pic.twitter.com/QjPvtRCzGH — James Butterfill (@jbutterfill) March 13, 2024This milestone reflects an evolving investment landscape where digital assets are increasingly recognized for their potential to diversify and grow within investment portfolios.
Interest in crypto investment products is further evidenced by the record trading volume witnessed last week, which soared to $43 billion—nearly 50% higher than the previous peak.
Such trading activity and the recent upswing in cryptocurrency prices have propelled the total assets under management (AUM) across these funds to approach the $100 billion mark.
The US market, in particular, has been at the forefront of this wave, accounting for nearly 100% of the inflows this week, with funds from other regions netting out.
Particularly, $1.55 billion of this week’s inflows, representing over 88% of the total, were attributed to US spot Bitcoin ETFs, including a historic daily net inflow of $1 billion on Tuesday, predominantly into BlackRock’s IBIT ETF.
Challenges And Opportunities In The ETF SpaceSpeaking of ETFs, despite the overall positive trajectory, the path has not been without its challenges.
For instance, the First Trust-SkyBridge’s BTC ETF Trust recently faced a setback when the United States Securities and Exchange Commission (SEC) declared the filing “abandoned.”This development, shared by senior Bloomberg Intelligence ETF analyst and crypto advocate Eric Balchunas, underscores the regulatory hurdles still faced by some entities in the crypto ETF space.
Balchunas remarked on the potential impact of the First Trust SkyBridge Bitcoin ETF Trust’s approval, suggesting it could have boosted fund inflows by an additional 15%.
The SEC is ordering (in all caps) First Trust SkyBridge Bitcoin ETF to declare their filing “abandoned” today.
FT was one of the filers who never jumped back in to the post-BLK race, not sure why.
Had they launched prob add 15% to the flows prob as First Trust is a sales MACHINE pic.twitter.com/ruEbFvyFxC — Eric Balchunas (@EricBalchunas) March 12, 2024Amid these developments, Bitcoin’s performance continues to captivate investors’ attention.
Although the leading cryptocurrency has seen a slight retracement below $73,000, it remains buoyant, trading at $72,577, with a 1.2% increase in the past 24 hours and nearly 10% over the week.
Featured image from Unsplash, Chart from TradingView

Early in 2024, there was a noticeable upsurge in the cryptocurrency investment market that broke previous records for capital inflows into cryptocurrency funds. Within the first quarter of this year alone, cryptocurrency investment products received over $12 billion in global funding, according to data from CoinShares.

This figure surpasses the total inflow recorded for the entirety of 2021, which stood at $10.6 billion, and indicates a significant increase in investor confidence and interest in digital assets.

The increased amount of investment activity is evidence of the general public’s growing acceptance of cryptocurrencies. It emphasizes how important new financial products are to the industry’s ability to draw large amounts of capital, especially the US spot Bitcoin ETFs.

Record AUM Growth and Volume.

Coinshares reports that inflows into international cryptocurrency exchange-traded funds (ETFs) and exchange-traded products (ETPs) have approached $1.08 billion just this week. With a significant amount of the money going toward recently introduced spot Bitcoin ETFs in the US, this capital inflow surpassed the previous annual record.

ETFs and ETPs focused on digital assets have blasted past the 2021 record, with inflows over the past few days amounting to US$12 billion ytd, compared to US$10.6 billion for the entire 2021 year. James Butterfill (@jbutterfill) on March 13, 2024: pic . twitter . com/QjPvtRCzGH.

This achievement is indicative of the changing nature of the investment environment, as digital assets are becoming more widely acknowledged for their capacity to expand and diversify investment portfolios.

The record trading volume last week—which surged to $43 billion—nearly fifty percent higher than the previous peak—is more proof of the interest in cryptocurrency investment products.

Total assets under management (AUM) across these funds has risen to almost $100 billion as a result of this trading activity and the recent surge in cryptocurrency values.

This wave has primarily been led by the US market, which has accounted for almost all of the inflows this week, with money from other markets netting out.

Specifically, US spot Bitcoin ETFs were responsible for $1.55 billion of this week’s inflows, or more than 88 percent of the total. Notably, on Tuesday, there was a record daily net inflow of $1 billion, primarily into BlackRock’s IBIT ETF.

Opportunities And Difficulties In The ETF Industry.

Speaking of ETFs, the journey has not been without difficulties despite the generally favorable trajectory. One recent setback for the First Trust-SkyBridge’s BTC ETF Trust was the United States Securities and Exchange Commission (SEC) declaring the filing as “abandoned.”. “.

The regulatory obstacles that certain entities in the cryptocurrency ETF space continue to face are highlighted by this development, which was disclosed by Eric Balchunas, a crypto advocate and senior analyst for Bloomberg Intelligence.

Balchunas commented about the approval of the First Trust SkyBridge Bitcoin ETF Trust and said it might have increased fund inflows by fifteen percent.

First Trust SkyBridge Bitcoin ETF is being ordered by the SEC to declare their filing “abandoned” as of right now (all capital letters). I am unsure of the reason behind FT’s decision to not rejoin the post-BLK race. — Eric Balchunas (@EricBalchunas) March 12, 2024 If they had launched, they probably would have added 15% to the flows because First Trust is a sales MACHINE.

Bitcoin’s performance is still grabbing investors’ attention in the midst of these changes. As of right now, the top cryptocurrency is trading at $72,577, up 1.2 percent over the last day and almost 10 percent for the week, despite a minor retreat below $73,000.

The Unsplash image that is featured is sourced from TradingView.

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