CoinShares’ latest report reveals a massive $1.1 billion surge into cryptocurrencies following the SEC’s approval of Bitcoin ETFs. Bitcoin garnered the majority of these inflows, but Ethereum and Cardano also experienced significant increases in investor interest.
CoinShares, a digital assets manager, reports an astonishing $1.1 billion influx into crypto investment products within just a month of the SEC giving the green light to spot Bitcoin exchange-traded funds (ETFs). This surge, highlighted in CoinShares’ Digital Asset Fund Flows report, represents a significant milestone for the cryptocurrency market. The report emphasizes the relentless momentum in institutional adoption, with over a billion dollars pouring into crypto investment products in the past week alone.
CoinShares points out that the majority of these inflows were directed towards Bitcoin ETFs, with nearly $3 billion flooding in over the past month. This trend showcases the growing confidence in Bitcoin’s potential as a profitable investment vehicle. Furthermore, Bitcoin’s soaring price has generated positive sentiment around other noteworthy cryptocurrencies, such as Ethereum and Cardano.
While the United States remains at the forefront of Bitcoin ETF investments, other regions have also demonstrated notable activity. Switzerland, for example, witnessed inflows of $35 million last week, indicating a wider global interest in digital assets. Despite minor outflows from Canada and Germany, the overall trend suggests a decrease in outflows from other regions.
Regionally, the focus remains on the newly introduced spot-based Bitcoin ETFs in the United States. Since their launch on January 11th, these ETFs have seen a remarkable $2.8 billion in inflows. While outflows from existing incumbents have slowed down, potential sales, such as Genesis holdings with $1.6 billion, could still trigger further market movements in the near future.
Apart from Bitcoin, altcoins like Ethereum and Cardano have also attracted positive sentiment and inflows. Ethereum received $16 million in investments, while Cardano saw $6 million inflows, boosted by overall market appreciation. Additionally, minor inflows were observed in altcoins like Avalanche, Polygon, and Tron, indicating diversified interest among investors.
Avalanche (AVAX) has stood out in the world of altcoins due to its recent performance. Despite a temporary decline in active addresses, AVAX has shown promising metrics, including a notable increase in subnets and validators. The blockchain processed over 7.6 million transactions last week, indicating strong network activity. Furthermore, Avalanche’s performance in the decentralized finance (DeFi) sector has seen a positive trajectory, with an increase in total value locked (TVL) within its ecosystem.
Following these positive developments, AVAX has experienced a bullish surge in price, rallying with increased trading volume. At the time of writing, AVAX was trading at $39.93, reflecting an impressive 3% surge in the last 24 hours. The token’s market capitalization surpassed $14.7 billion, solidifying its position as the ninth-largest cryptocurrency by market capitalization.
Technical indicators suggest a bullish outlook for AVAX in the short term, with the MACD signaling bullish control over the market. The Chaikin Money Flow (CMF) also indicates a sustained uptrend, further boosting investor confidence. However, caution is advised as the Relative Strength Index (RSI) approaches the overbought zone, which could trigger profit-taking and temporary price corrections in the coming days.
Institutional interest in cryptocurrencies continues to soar, with significant inflows observed across various digital assets, especially Bitcoin ETFs. Amidst market dynamics and regulatory developments, altcoins like Avalanche (AVAX) demonstrate resilience and growth potential, attracting the attention of institutional and retail investors.