Crypto Fund Investments Hit Record High Since 2021’s End
Last week, institutional investors put $346 million into crypto funds, marking the largest inflow since the end of 2021. Throughout the year, they’ve invested a total of $1.7 billion.
Bitcoin is the top choice: it has $1.6 billion or 93% of the total investments.
Solana secured the second place with $138 million over the year. We discussed the reasons behind this in the article “Why Solana Has Doubled In The Last Month”.
The overall volume of crypto assets managed hit a year-and-a-half high at $45.4 billion. Initially led by US investors, the crypto demand now extends to Canada and Germany.
Additionally, institutional investor interest is evident in the surge of open interest on the CME, rising from $1.3 billion to $4.1 billion within the year. This nears the historical 2021 record when it reached $5.5 billion.
The increased activity is driven by expectations of a spot ETF approval. Especially after Binance’s settlement with the US Department of Justice, which eases concerns about funds leaving the country.
Galaxy Research estimates the ETF could bring in $14.4 billion in the first year and between $125 billion and $450 billion long-term. If approval happens soon, Bitcoin could rise 6.2% in the first month and 74% by December 2024, hitting $64,000.
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