Bitcoin Investment Products Capture Investor Interest Amid Anticipation of US Spot ETF Approval

Bitcoin (BTC)-related investment products seem to be the primary beneficiaries of the rising investor interest in crypto, particularly driven by the expectation of a spot Bitcoin ETF getting the nod in the United States. A massive amount of $1.76 billion has poured into crypto products within a span of 10 weeks, marking the most considerable inflows over such a timeframe since October 2021—the landmark period when Bitcoin futures were initiated.

Unprecedented Inflows

Over the past 10 weeks, an overwhelming $1.44 billion has been funneled into Bitcoin investment products alone—the period coinciding with Bitcoin’s price surge from $26,600 to $37,700 as of December 1. As investors continue to show a predilection for crypto, the week ending December 1 recorded inflows of $176.3 million into crypto investment products.

Intensifying Investor Influx

Bitcoin investment products have been the primary beneficiaries, registering a whopping $132.8 million worth of inflows over the past week. Ether (ETH) and Solana (SOL) products were not far behind, accounting for $30.8 million and 4.3 million, respectively.

Awaiting Spot Bitcoin ETF Approval

The arrival of inflows aligns with spot Bitcoin ETF applications moving ever so closer to potential approval in the U.S. Certain Bitcoin futures-based products may be basking in the recent euphoria over potential approvals, according to industry insiders.

As observed by James Edwards, a prominent cryptocurrency analyst, “Institutional investors are already speculating on the ETF approval, with inflows to existing Bitcoin futures ETFs such as ProShares BITO escalating over the past few days, smashing 2021 records.”

Consequently, with Bitcoin and other digital asset investment products experiencing unparalleled investor influx and the potential approval of spot Bitcoin ETF glancing on the horizon, 2023 may well be a defining year in the crypto space.