Following the recent volatile days in the cryptocurrency world, according to CoinShares data, it is observed that there have been significant investment inflows into Bitcoin-based digital asset investment products, or crypto funds, since July 2022.
Substantial Investment Flow into Crypto Funds
As per the disclosed data, over $326 million was invested in crypto funds within the past week. This also marked the largest weekly inflow seen since July 2022. Moreover, a significant portion of this substantial investment flow went into Bitcoin-based funds. Approximately 90% of the total $296 million capital was allocated to digital asset investment products led by Bitcoin.
Optimism Amidst Regulations
However, CoinShares also notes that the increased investment flow is driven by the expectation among investors that the U.S. Securities and Exchange Commission (SEC) is nearing approval for a spot Bitcoin ETF.
“While we believe this is an indication that there is now a strong likelihood that a spot-based ETF will be approved in the coming months, which would be a significant turning point for the industry, it also shows there are still constraints among investors.”CoinShares analysts
Source: The Block