According to a recent CoinShares report, the first week of 2024 witnessed a significant milestone in crypto investments, with a notable influx of $151 million into investment products in this sector.
The significance of this over $150 million increase in inflows was highlighted by James Butterfill, Head of Research at CoinShares, especially in light of Grayscale’s ongoing legal battle with the US Securities and Exchange Commission (SEC).
Since the case’s inception in October 2022, these inflows have totaled $2.3 billion, accounting for 4.4% of the firm’s total managed assets.
Despite the lack of a spot exchange-traded fund (ETF) launch in the US, Butterfill revealed that American exchanges played a significant role, accounting for 55% of inflows. Following that, German and Swiss exchanges contributed 21% and 17% of the inflows, respectively.
Over the last nine weeks, Bitcoin has amassed $113 million in investment inflows, equivalent to 3.2% of total assets under management (AuM).
A notable trend identified by James Butterfill calls into question the widely held belief that the US SEC’s approval of a spot Bitcoin ETF will be a “buy the rumor, sell the news” event.
Despite this expectation, instead of inflows into short-Bitcoin exchange-traded products (ETPs) that profit from a drop in the price of Bitcoin, there have been outflows totaling $7 million over the last nine weeks.
