Markets
Bitcoin ETFs See Inflows of Nearly $2 Billion, Traders Predict Ether (ETH) to Hit $10,000 in 2024
Cryptocurrency investment products garnered nearly $2 billion in inflows last week, helping extend a five-week run to more than $4.3 billion, asset manager CoinShares said in a report on Monday.
Exchange-traded products (ETP) trading volumes rose to $12.8 billion for the week, up 55% from the previous week. Bitcoin led investment activity with inflows of more than $1.97 billion during the week, while Ether (ETH) recorded its best week of inflows since March with nearly $70 million.
US spot bitcoin exchange-traded fund (ETF) buying activity has picked up since mid-May after a dismal few weeks in April, which saw days of zero net inflows across all products and even outflows from major products like BlackRock’s IBIT. . Since then, however, inflows have increased, with IBIT becoming the largest bitcoin ETF last week accumulating assets worth more than $20 billion since its January issuance.
“Unusually, there have been inflows into nearly all providers, with outflows from incumbents continuing to slow,” said CoinShares analyst James Butterfill. “The positive price action saw total assets under management (AuM) rise above the $100 billion mark for the first time since March this year.”
Butterfill added that the ETH purchase was likely a reaction to the SEC’s surprise decision to allow spot ether ETFs.
Meanwhile, some traders expect inflows into ETH products to continue in the coming months, with a rally expected towards the end of the year.
“$5-10 billion of new capital could be channeled through ether products in the near to medium term,” Ed Hindi, chief investment officer at Tyr Capital, told CoinDesk in an email Monday. “This could fuel a year-end rally in ETH and its ecosystem to new record highs.”
“A price target of $10,000 in 2024 is now a reasonable target, especially when taking other supporting factors into consideration, such as ETH now being deflationary,” Hindi added.
In May, the US Securities and Exchange Commission (SEC) approved key regulatory filings related to ETH ETFs on Thursday, a historic milestone for the second-largest cryptocurrency.
The regulator has approved documents for eight ETFs – from VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21Shares, Invesco Galaxy and BlackRock – for listing on the Nasdaq, NYSE Arca and Cboe BZX exchanges.