After the frigid crypto winter, a thaw is setting in for Bitcoin & Co. Blackrock in particular has reignited interest in digital investment products, trading data shows.
Blackrock's application for a spot Bitcoin ETF in the US could represent a turning point in the cryptocurrency market. In any case, interest in digital assets has already surged and trading has perked up.
The price of bitcoin has risen from around $25,000 to the current level of around $30,300 following a boost from the world's largest asset manager, followed by other major US investment houses.
According to European asset manager CoinShares' latest report on inflows into digital investment products, last week saw strong inflows, making up for much of the outflows seen in the previous two months. CoinShares is one of the largest and oldest digital asset managers in Europe.
Bitcoin Accounts for Lion's Share
During the week of June 19-23, inflows totaled $199 million, with Bitcoin accounting for the lion's share at $187 million, corresponding to 94 percent of the total. This marked the highest weekly inflows for digital investment products since July 2022, according to CoinShares.
Exchange-traded products (ETPs) also saw increased activity, with CoinShares reporting that these instruments reached $2.5 billion in total weekly trading volume. Trading volume was 170 percent above average for the year.
Give Institutional Thanks
The renewed positive sentiment is due to recent announcements by high-profile ETP issuers filing applications with the Securities and Exchange Commission for physically-backed ETFs, CoinShares analysts write.
Total assets under management (AuM) now stand at $37 billion, the highest level since the collapse of Three Arrows Capital.
