Cryptocurrency products have seen a tremendous amount of inflow in the last four weeks over the possibility that a Bitcoin exchange-traded fund (ETF) might be approved in the United States soon.
A recent report by CoinShares shows that $66 million was added to digital asset investment products by the end of last week, pushing the total amount of money invested in these products to $33 billion.
It seems that the anticipation of a spot #Bitcoin ETF has prompted further inflows for the 4th consecutive week. Here is our analysis with @Jbutterfill.— CoinShares (@CoinSharesCo) October 23, 2023
🟢 Week 43 inflows: US$66m
🔎 Inflows are relatively low in comparison to June’s @BlackRock announcements, suggesting more… pic.twitter.com/6AkDGQJVOh
These developments prompted a surge in the Bitcoin price, which increased by 14% in the past 24 hours and briefly reached $34,000, a level it hadn't seen since May 2022.
$55.3 million (84%) was directed towards Bitcoin-related investments, while a total of $315 million invested in Bitcoin products has been recorded from the start of the year to this date.
However, Coinshares Research Head James Butterfill pointed out that the latest increase is still lower than the one from earlier this year when BlackRock first applied for a Bitcoin ETF.
In June, there was a four-week period where $807 million was invested in the sector. The lower investments recently suggest that investors are being more careful this time around.
Binance Removes Several Crypto Pairs
Binance, the world's largest cryptocurrency exchange, will remove 17 liquidity pools from Binance Liquid Swap on October 27.
This change aims to make transactions smoother and give users better prices. Users with assets in these pools will have their assets automatically transferred to their Spot wallets.
Surprisingly, the value of meme cryptocurrencies Dogecoin (DOGE) and Shiba Inu (SHIB) remains strong despite these changes. DOGE has gone up by 3% in the last 24 hours, while SHIB has seen a 4% increase.
These increases might be due to the overall recovery of the cryptocurrency market, with Bitcoin's recent resurgence.
XRP's value also rose to nearly $0.53 after Ripple's legal victory against the U.S. Securities and Exchange Commission (SEC), and Solana (SOL) has surged by 12%.
Edited by Nikola Djuric