Investors are turning to cryptocurrency-based exchange-traded funds (ETFs).
Although cryptocurrency exchange-traded funds, or ETFs, are still far from mass adoption, more and more investors are turning to these investment products to access the new opportunities offered by the crypto market and to diversify their portfolios with digital assets such as Bitcoin, which has demonstrated great profitability since its launch in 2009.
In the last week, cryptocurrency-based investment products recorded $137 million in tickets. According to data from CoinShares, the inflow of funds into these investment products amounted to a total of $742 million dollars in the last month, which represents the highest volume of entries recorded since the last quarter of 2021.
Currently, the filing by BlackRock and other financial giants such as Fidelity and Ark Invest for the creation of a Bitcoin spot ETF in the United States has sparked a great deal of interest in Bitcoin. According to CoinShares, investors are currently keeping their focus on the main cryptocurrency on the market.
A huge appetite for Bitcoin
In his report "Digital Asset Fund Flows – Week 29”, CoinShares emphasized that Bitcoin saw inflows totaling $140 million. Bitcoin remains the most sought-after cryptocurrency by investors and institutions, despite its price registering a 56% drop from its all-time high in November 2021 and hovering around the level of the $ 30.000 dollars per unit, currently.
According to the data from the crypto asset manager, the volume of inflows that Bitcoin registered in investment funds in the last 7 days comprises 99% of all the reported inflows.
On the other hand, a large part of the inflows recorded in cryptocurrency-based exchange-traded funds came almost exclusively from North America, mainly from the United States and Canada. These countries recorded inflows worth $109 million and $28 million, respectively. In Europe, capital inflows into cryptocurrency investment funds were much more moderate, with smaller inflows coming from Switzerland.
CoinShares also highlighted that Ethereum, the second-leading cryptocurrency by market capitalization, has failed to capture the interest of investors, despite having shown an appreciation of almost 8% this week, when its price exceeded $2.000 on July 13. Instead of registering inflows, Ethereum registered outflows in the order of $2 million dollars, being the cryptocurrency with the highest volume of outflows so far this year, even more than Solana (SOL), Cardano (ADA), Litecoin (LTC) and Polygon Network (MATIC).
The data presented by CoinShares in its recent report shows that Bitcoin is increasingly appreciated as a safe haven for investors.
Bitcoin returns to the 2021 statistics
In addition to dominating weekly inflows into cryptocurrency-based ETFs, Bitcoin has also seen significant growth in the number of new BTC addresses. Data from Block Research shows that more than half a million new BTC addresses are being created each week, marking a record for the most capitalized cryptocurrency on the market this year.
According to the platform's data, The number of new BTC addresses reached 501.440 this weekThe last time a similar figure, above 500.000 new BTC addresses, was seen was in May 2021.
Continue reading: Europe is about to launch its first Bitcoin spot ETF
