November 15, 2023

Crypto Market Sees Over $1 Billion Surge in Institutional Investments in Less Than Two Months

Since November 2022, the cryptocurrency market's total capitalization has surged by nearly $700 billion, as reported by Tradingview.

In a span of less than two months, institutional investments in the crypto market have experienced an impressive influx, surpassing $1 billion and indicating a renewed interest in cryptocurrencies.

CoinShares, a prominent crypto asset management firm, highlighted this noteworthy trend in its latest weekly report on November 13, emphasizing the increasing flow of capital into both bitcoin and alternative cryptocurrencies.

The recent surge in the prices of bitcoin (BTC), ether (ETH), and select altcoins is attributed to growing excitement surrounding the potential approval of the United States' first spot exchange-traded fund (ETF).

According to Tradingview data, the total market capitalization of the cryptocurrency market has surged by almost $700 billion since November 2022.

However, the past two months have witnessed a significant increase in funds allocated to crypto investment products. CoinShares revealed:

"Digital asset investment products saw inflows totaling US$293 million last week, bringing this 7-week run of inflows past the US$1 billion mark, leaving year-to-date inflows at US$1.14 billion, making it the third-highest yearly inflows on record."

A notable statistic indicating the resurgence of crypto in 2023 is the Assets Under Management (AUM) of crypto exchange-traded products (ETPs). Since the beginning of the year, this figure has nearly doubled, with a remarkable 10% increase occurring in just the past week.

CoinShares pointed out:

"At US$44.3 billion, total AUM is now the highest since the major crypto fund failures in May 2022."

The report also highlighted that investors seeking long positions in bitcoin accounted for the majority of the trading volume.

"Bitcoin saw inflows totaling US$240 million last week, pushing year-to-date inflows to US$1.08 billion, while short-bitcoin saw US$7 million outflows, indicative of continued positive sentiment," stated the report.

This renewed interest has prompted on-chain analytics firm Glassnode to reassess bitcoin supply dynamics. As the fourth Bitcoin halving event approaches, bitcoin holdings for storage now exceed the amount mined by a factor of 2.4, signifying a significant milestone and attracting investor interest due to its impressive historical returns.

Furthermore, Philip Swift, the creator of the statistics platform Lookintobitcoin, highlighted the increasing number of wallet entities, both large and small, as a sign of growing adoption.

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