After poor yield in summer, BTC investment products have been recording constant inflows again for several weeks. The increasing demand among institutional investors reflects the recent uptrend in digital currency and could prove to be a fuel for an autumn rally. The market update.
Since the total market capitalization regained the USD 2 trillion mark around two weeks ago, the crypto market has slowly but surely been picking up again. The gap to the May record high has now shortened significantly, currently less than 200 billion US dollars are missing from the peak value. That sounds like a lot, but the gains are holding their pace and should gradually allow the clock to be set to the next all-time high. In the past two weeks alone, over $ 500 billion has flowed into the market. Of this, a considerable part of 200 billion US dollars went to the account of the crypto key currency BTC (BTC), which now has a market capitalization of more than one trillion US dollars. The percentage of the overall market – the BTC dominance – was able to make up ground again. Since the annual low, which was streaked a month ago, BTC’s share of the crypto market has caught up with five percent.
On the way to the old form strength, however, the price increases of the past few days have opened a lucrative window for profit-taking. The daily balance of the total market capitalization consequently slips by 1.2 percent. With a minus of 4.6 percent, BTC posted the biggest setback among the ten largest cryptocurrencies at the time of going to press and thus fell just under 55,000 US dollars. ETH, Cardano (ADA), XRP and Dogecoin (DOGE) also get under the wheels with price drops between 1.3 and 2 percent, while Binance Coin (BNB) defied the daily trend and crowned itself the top performer with a 24-hour increase of around ten percent. Solana (SOL) and Polkadot (DOT) also posted slight gains of up to three percent.
The BTC tap is turned on
After meager capital inflows in the summer months, crypto investment products are again attracting an increasingly well-funded audience. Asset manager Coinshares according to Digital asset investment products have seen an 8 week series of inflows – a total of $ 638 million. In the past week alone, the capital inflows amounted to 226 million US dollars, with BTC at around 225 million US dollars making up the absolute lion’s share. Solana and Cardano also have slight inflows, while almost $ 13 million flowed from ETH investment products.
That looked different in the summer. While the BTC rally was a long time coming, institutional investors shifted their focus to altcoins like Solana, Cardano and ETH. Coinshares attributes the change of mood to “the constructive statements of SEC chairman Gary Gensler, who may allow a BTC ETF in the US”. The approval of a BTC ETF on the US stock exchange has so far been a Herculean task. More and more, however, there are signs of the green light from the stock exchange supervisory authority. Approval would be equivalent to an accolade and would further establish BTC as an asset class among professional investors.