Leading funds that have filed with the SEC have seen huge inflows in response to news that a Bitcoin ETF may be imminent. This includes Grayscale, 21Shares, CoinShares, Bitwise, and ProShares.
The total amount of inflows for all companies has already exceeded $346 million. This is the biggest surge in the cryptocurrency market after a significant increase in 2021, according to CoinGape.
In the previous week, the companies recorded capital gains of $176 million. After nine successful weeks of a bullish trend, investments in crypto funds have reached $1.5 billion since the beginning of this year.
CoinShares analyst James Butterfill believes the strong influx of funds came amid expectations of SEC approval of spot Bitcoin ETFs.
"The combination of higher prices and increased inflows has pushed total assets under management (AUM) to $45.3 billion, the highest in a year and a half," Butterfill said.
Bitcoin-based investment products accounted for a significant percentage of total inflows. Their volume rose to $312 million. Short traders continue to give up, with outflows totaling $900,000 in the third week and assets under management down 61% from April 2023 levels.
Canada and Germany saw the most inflows, up to 87%, while the U.S. saw the least. The Americans were able to provide only $30 million in fund inflows, which is the result of waiting for the Bitcoin ETF product.
It is worth noting that altcoins, especially Ethereum, also saw inflows, but in much smaller volumes. Ethereum's turnover for the month was $103 million, while inflows for the week were $34 million. Solana, Polkadot, and Chainlink, some of the most popular altcoins, saw inflows of $3.5 million, $0.8 million, and $0.6 million, respectively.
Market experts continue to believe that SEC approval is inevitable and only a matter of time. The regulator has held talks with several applicants, including BlackRock and Grayscale Investments, and leading analysts at Bloomberg are not backing down from their predictions of a 90% chance of approval in January 2024.
Read also: British regulator FCA develops measures on tokenization of funds.