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Wednesday, October 25, 2023

Bitcoin Funds Saw $57 Million Influx on Monday

By Mark Hunter ↗

2 hours agoWed Oct 25 2023 08:49:47

Reading Time: 2 minutes

  • Global publicly traded crypto funds attracted over $61 million in fresh capital on Monday, with 93% going into Bitcoin products
  • Bitcoin funds received $55.3 million in institutional investments last week, a figure surpassed in just one day, reflecting intense interest in a Bitcoin ETF
  • Several Bitcoin ETF products are in a race to be the first awarded a license by the SEC

Publicly traded crypto funds around the world attracted more than $61 million in fresh capital on Monday, a figure representing over 10% of the net deposits into crypto funds since the beginning of the year, with the majority of these investments being channeled into Bitcoin-related funds. Figures from Coinshares show that institutional Bitcoin funds attracted $55.3 million worth of investment last week, with that figure being eclipsed on Monday alone as Bitcoin ETF mania continues to heat up.

Last Week’s Total Beaten in One Day

Monday’s surge in investment coincided with Bitcoin’s price reaching $35,000, fueled by growing anticipation for a spot Bitcoin ETF being approved. Of the total inflows that arrived on Monday, over 93% went into Bitcoin-based funds, highlighting the strength of feeling towards the premiere crypto asset, while an additional $5.7 million was allocated to Solana.

Germany and Canada have taken the lead in launching spot Bitcoin ETFs, where shares can be directly redeemed for a specific portion of underlying Bitcoin. The ETC Group in Germany saw $24.3 million in capital inflows into its crypto products on Monday, while Canada’s Purpose Investments, the world’s first Bitcoin ETF provider, received $10.9 million. Products from 21Shares AG garnered an additional $11.8 million.

Bitcoin ETF Race Enters Final Straight

Despite the availability of Bitcoin-based investment options for US investors, none currently provide direct 1:1 exposure to spot Bitcoin. The closest that institutional investors can get at the moment is through Grayscale’s Bitcoin Trust, which the company believes has the best chance of being the first spot Bitcoin ETF following its recent legal victory over the awarding body, the Securities and Exchange Commission, while the ProShares Bitcoin Strategy ETF offers exposure to Bitcoin futures.

21Shares is also actively pursuing a spot Bitcoin ETF alongside Grayscale, BlackRock, and others, with the race seemingly reaching the finishing straight. On Monday, the Court of Appeals instructed the SEC to reevaluate Grayscale’s previously rejected application, while the authority must make a decision on the Ark/21Shares Bitcoin ETF application by January 10, well ahead of the final deadline for other applicants.

James Mackreides
James Mackreides
'Mac' is a short tempered former helicopter pilot , now a writer based in Sofia, Bulgaria. Loves dogs, the outdoors and staying far away from the ocean.

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