Bitcoin
Bitcoin ETFs See Inflows of Nearly $2 Billion, Traders Predict Ether (ETH) to Hit $10,000 in 2024
Crypto investment products received nearly $2 billion in inflows last week to help extend a five-week period to more than $4.3 billion, asset manager CoinShares said in a Monday report.
Exchange-traded products (ETPs) trading volumes increased to $12.8 billion for the week, a 55% increase from the previous week. Bitcoin led investment activity with inflows of over $1.97 billion for the week, while Ether (ETH) had its best week of inflows since March with almost $70 million.
Buying activity for spot bitcoin exchange-traded funds (ETFs) in the US has increased since mid-May, following a dismal few weeks in April that saw days of zero net inflows across all products and even outflows for key products, such as BlackRock’s IBIT. . However, since then, flows have increased – with IBIT becoming the largest bitcoin ETF last week accumulating more than US$20 billion in assets since its issuance in January.
“Unusually, inflows were seen across nearly all providers, with a continued slowdown in holder outflows,” said CoinShares analyst James Butterfill. “Positive price action has seen total assets under management (AuM) rise above the $100 billion mark for the first time since March this year.”
Butterfill added that the ETH purchase was likely a reaction to the SEC’s surprise decision to allow spot ether ETFs.
Meanwhile, some traders expect ETH product flows to continue in the coming months, with a recovery expected later in the year.
“$5-10 billion in new capital could be funneled through Ether products in the short to medium term,” Ed Hindi, chief investment officer at Tyr Capital, told CoinDesk in an email on Monday. “This could drive a year-end rally in ETH and its ecosystem to new highs.”
“A price target of $10,000 in 2024 is now a reasonable target, especially when other supporting factors, such as ETH now being deflationary, are taken into account,” Hindi added.
In May, the US Securities and Exchange Commission (SEC) on Thursday approved key regulatory filings tied to ETH ETFs, a historic milestone for the second-largest cryptocurrency.
The regulator approved documents for eight ETFs – from VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21Shares, Invesco Galaxy and BlackRock – for listing on the Nasdaq, NYSE Arca and Cboe BZX exchanges.