Bitcoin institutional inflows top $1B in 2023 amid BTC supply squeeze
Bitcoin (BTC) institutional investment vehicles have seen over $1 billion in new inflows in less than two months.
In its latest weekly report on Nov. 13, crypto asset management firm CoinShares furthered the narrative that Bitcoin and altcoins are again attracting capital.
Bitcoin, Ether (ETH) and some major altcoins are enjoying price gains as excitement over the possible approval of the United States’ first spot exchange-traded fund (ETF) grows.
Since November 2022, the total crypto market cap has increased by $600 billion, data from TradingView confirms.
The past two months, however, have seen a precipitous increase in funds being deployed to crypto investment products, CoinShares reveals.
“Digital asset investment products saw inflows totalling US$293m last week, bringing this 7-week run of inflows past the US$1bn mark, leaving year to date inflows at US$1.14bn, making it the third highest yearly inflows on record,” it summarized.
Among the impressive statistics showing crypto’s renaissance in 2023 is the assets under management (AUM) tally for crypto exchange-traded products (ETPs).
Since the start of the year, this has practically doubled, gaining nearly 10% in the past week alone.
“At US$44.3bn, total AuM is now the highest since the major crypto fund failures in May 2022,” CoinShares noted.
The report added that those aiming to long BTC had taken the lion’s share of volume.
“Bitcoin saw inflows totalling US$240m last week, pushing year-to-date inflows to US$1.08bn, while short-bitcoin saw US$7m outflows, indicative of continue positive sentiment,” it stated.
The renewed interest meanwhile spurred on-chain analytics firm Glassnode to reassess Bitcoin supply dynamics.
Related: Funding rates echo $69K BTC price — 5 things to
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