Bitcoin ETF’s approval marked an exciting week as institutional investors began pouring money into the cryptocurrency space. This development indicates that institutional investors are now more comfortable operating in the crypto market. It is particularly noticeable that the majority of Bitcoin inflows are coming from the United States. The ETF approval has significantly excited institutional investors.
Massive Fund Inflows from Institutional Investors for Bitcoin
Last week saw institutional investors making an entry into Bitcoin with $1.16 billion. The main factor for such a substantial inflow is the approval of Bitcoin ETFs. Institutional investors can now play the field in the crypto space more comfortably.
The approval of Bitcoin ETFs also brought a positive atmosphere to the cryptocurrency market. Bitcoin rose to $48,800, reflecting the optimism. At the point of writing, the cryptocurrency has experienced a slight pullback, trading at $42,686.
Investor Preferences for 6 Altcoins
In addition to Bitcoin, institutional investors also made entries into six altcoins. Accordingly, Ethereum, the leader of altcoins, saw an inflow of $25.7 million. On the other hand, Solana received a modest entry of $500,000.
This week, a $2.2 million entry into XRP stood out. Cardano received an inflow of $1.4 million, Litecoin $800,000, and Polkadot $200,000.
US Leads in Institutional Entries
The country with the most institutional entries was the United States. This is expected as the approval of a spot Bitcoin ETF has mobilized US institutional investors. The US saw an influx of $1.26 billion. Looking at other countries, Switzerland contributed $21.4 million, Brazil $5.6 million, and Australia $2.3 million.
Finally, it is noteworthy that there were also exits from some countries. Accordingly, Canada leads with an outflow of $44.2 million. Germany saw an outflow of $27 million from Bitcoin and altcoin-focused investment products, while Sweden had an outflow of $15.5 million. In summary, the significant inflows into Bitcoin and altcoin-focused investment products this week indicate the beginning of a new narrative in the cryptocurrency space.
