Research from EY-Parthenon shows that many institutional and retail investors want to increase allocations to digital assets and digital assets related products, Prashant Kher, Senior Director at EY-Parthenon.
The new Ether ETFs could also increase institutional investor participation, according to a Nansen analyst.
There are already more than a dozen crypto index funds marketed to investors, ranging from $1 million to several hundred million dollars in assets under management. Here’s why they make sense to investors, says Adam Guren of Hunting Hill.
Prospective providers of spot ether ETFs in the U.S. removed the provisions for staking from their applications to avoid potential regulatory roadblocks.
The physical ETPs will only be available to professional and institutional investors as the retail ban on crypto trading and sale of crypto derivatives
By approving bitcoin as an underlying product within the ETF space, the SEC has reduced risk at the base level of the asset, BitGo's Steve Scott writes. The only question is now will they invest?
Millennium Management is the largest Bitcoin ETF investor with a $1.9 billion investment.
Crypto investment products are up again in terms of inflows, giving the crypto industry a much-needed breather. Recent market dynamics have seen Bitcoin leading the surge of inflows into crypto investment products, signaling a possible resumption of bullish sentiment. James Butterfill, head of research at Coinshares, reported this inflow in a social media post. The statistics indicate that crypto investment products received inflows of $862 million over the timeframe spanning from March 23 to March 29 to reverse the record net outflows of $942 million set in the prior week. Unsurprisingly, most of the inflow went into Bitcoin, hinting at a potential buying opportunity for investors still waiting to get in on the asset during this bull run. Institutional Investors Pump $862 Million Into Crypto Market James Butterfill termed the inflow registered last week as a “recovery for ETFs.” This is rightly so, as these US-based Spot Bitcoin ETFs gave investors a scare in the prior week with lackluster inflow, hinting at the possibility that the bull run could be coming to an end. This led to crypto investment products bleeding for the first time after seven consecutive weeks of inflows. Related Reading: Forget Bitcoin, Altcoins Are The Winners Of This Cycle, Crypto Analyst Says However, it would seem the sentiment regarding Spot Bitcoin ETFs is now back to a very bullish outlook. As a result, Bitcoin registered $865 million in inflows to bring its year-to-date inflow to $12.83 billion. On the other hand, Ethereum and multi-asset products registered $18.9 million and $2.6 million in outflows, respectively, to offset some of the inflows registered by Bitcoin. Inflows of $6.1 million, $0.2 million, $0.3 million, $1.1 million, and $2.4 million were recorded for Solana, Litecoin, XRP, and Polkadot, respectively. Polkadot also registered an inflow of $2.4 million. Short Bitcoin products, on the other hand, witnessed outflows of $2 million. Source: CoinShares Buying Opportunity For Bitcoin? Bitcoin’s price surge for the past few months has largely been due to action surrounding Spot Bitcoin ETFs. Interestingly, last week’s inflow activity saw Bitcoin breaking into the $70,000 price territory multiple times last week. This bullish momentum wasn’t sustained, allowing the bears to create a resistance at around $71,000. Related Reading: Hedge Fund Manager Predicts When Bitcoin Price Will Reach $150,000 Nevertheless, the inflow indicates something bullish might be brewing behind the scenes. Fundamentals surrounding the crypto point to a bullish price action throughout April, particularly as the next halving approaches. Bitcoin went through bearish price action over the weekend, correcting by almost 7% from $71,285. At the time of writing, Bitcoin has broken below a support at $68,500 and is now trading at $66,510. According to Santiment, the price dip has given crypto traders a sense of buying opportunity with calls of “buy and bullish” spiking across social media. Total market cap rises toward $2.4 trillion | Source: Crypto Total Market Cap on Tradingview.com Featured image from Mint, chart from Tradingview.com
After the scandals and regulatory headaches of the last market cycle, crypto is growing and embracing the needs of institutions entering the digital assets space.