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Surpassing $1B, Bitcoin Institutional Inflows Skyrocket in 2023 Amid BTC Supply Crunch!

Over $1 Billion in New Inflows into Bitcoin Institutional Investment Vehicles

In less than two months, Bitcoin (BTC) institutional investment vehicles have experienced onboarding of more than $1 billion. This comes courtesy of CoinShares, a top-tier crypto asset management firm. The firm further illustrates that Bitcoin and other digital assets are re-attracting capital.

Crypto Institutional Product AUM Increases by 99% In A Year

Since November 2022, anticipation over the potential authorization of the United States’ debut spot exchange-traded fund (ETF) has been contributing to price gains in Bitcoin, Ether (ETH), and certain significant altcoins. According to data from TradingView, there has been a $600 billion upturn in the total crypto market cap.

Nevertheless, the past couple of months have registered a drastic surge in capital being allocated to crypto investment products, as revealed by CoinShares. Last week’s inflows saw a culmination of US$293m, sending the entire seven-week run of inflows sprinting ahead of the US$1 billion benchmark. Consequently, the year-to-date inflows stand at US$1.14 billion, cementing a third-place ranking in yearly inflows on record.

Assets Under Management (AUM) for Crypto Exchange-Traded Products Tally Doubles

One of the astounding statistics spotlighting crypto’s revival in 2023 is the tally for AUM for crypto exchange-traded products (ETPs). This has virtually doubled from the inception of the year, accruing almost 10% in just the last week.

Now, the AUM stands at a towering US$44.3 billion, the most towering since the significant crypto fund breakdowns in May 2022. The report added that optimists who are betting on a BTC surge have clinched the lion’s share of volume. Last week, Bitcoin fetched a whopping US$240m in inflows, thereby notch the year-to-date inflows up to US$1.08 billion.

Increasing Wallet Entities: An Indication of Adoption

The revival of interest has prompted on-chain analytics firm, Glassnode, to reevaluate Bitcoin supply dynamics. With the next block subsidy halving due in just five months, Bitcoin that is currently being stashed away for storage is outpacing the mined amount by a 2.4 ratio.

This is in accordance with the latest edition of their weekly newsletter, “The Week On-Chain.” Philip Swift, the originator of the statistics platform Look Into Bitcoin, provides further corroboration to this new trend.

Swift highlights an uptick in wallet entities, with sizes both large and small. He states, “This is what adoption looks like.”

It is important to remember that every investment and trading move entails a certain degree of risk. Potential investors are advised to conduct their own research before taking decisions.

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