CoinShares Report: Bitcoin Receives Major Investor Attention Amidst New Highs for 2023
Bitcoin (BTC) remains the top target for institutional investors in the past two weeks as the market continues its uphill form this year.
A new report from CoinShares shows Bitcoin’s investment products have attracted $310 million in inflows over 14 days amid skepticism over the approval of the spot BTC ETF by the Securities and Exchange Commission (SEC).
According to the report, BTC leads the pack as it recovers from the previous nine weeks of consecutive outflows.
While this week's inflows amounted to $123 million, short-BTC investment products recorded $0.9 million in outflows dragging its negative run to the 10th straight week.
Bitcoin dominance can be seen as its share in the last two weeks makes up 98% of the entire market, the second time this year leaving no room for a bearish sentiment with its price trading above $31,000 at press time.
Ethereum led the altcoin pack inflows of $2.7 million while blockchain equities recorded inflows of $6.8 million, the first time in nine weeks.
Other altcoins like Ripple (XRP), Cardano (ADA), and Polygon (MATIC) recorded similar positive figures with Solana (SOL) posting $0.8 million.
James Butterfill, CoinShares Head of Market Research highlighted that Bitcoin remains the “primary focus” of investors amid high trading activity.
“Bitcoin investment products are now back to a net inflow year-to-date having been in a net outflow position of US$171m just 2 weeks ago.”
On the back of a spot ETF
The reason for Bitcoin’s growing market dominance in recent weeks isn’t far-fetched and fingers can easily be pointed to the frenzy garnered by multiple spot ETF applications sparked off by BlackRock’s initial push.
The price of the leading cryptocurrency has spiked 25.2% since BlackRock made its application last month. WisdomTree, Invesco, and Fidelity also made similar applications.
BTC currently has a market dominance of 51.23% after it reclaimed its 50% market dominance for the first time in two years.
Despite skepticism creeping in following the SEC’s rejection of past spot BTC ETF applications, some observers including analysts at brokerage firm Bernstein opine that the Commission is likely to approve the proposal.
“SEC would rather bring in a regulated bitcoin ETF led by more mainstream Wall Street participants and with surveillance from existing regulated exchanges, than having to deal with a Grayscale OTC product filling the institutional gap.”
Bitcoin’s fear and greed index remains bullish and maintains its stance in the greed zone at 64.