Outflows from various Bitcoin short investment products totaled over $1 million, suggesting traders are bullish on spot Bitcoin ETF applications getting the nod from the SEC.
Digital asset investment products, or exchange-traded products (ETPs), saw inflows of $151 million in the first week of 2024, according to data from CoinShares. The latest week of inflows brought the total since the conclusion of the Grayscale vs. SEC lawsuit to $2.3 billion.
The latest digital asset investment flow data paints a bullish picture for the crypto ecosystem in the lead-up to the potential approval of the first spot Bitcoin exchange-traded fund (ETF) in the United States, as U.S.-based exchanges contributed 55% of the total investment flow in the first week of 2024.
Bitcoin saw the largest share of inflows at $113 million, followed by Ether at $29.6 million. Altcoins with notable inflows include Cardano’s, Avalanche and Litecoin, with $3.7 million, $2 million and $1.4 million, respectively.
Another bullish sign for Bitcoin came in the form of outflows from Bitcoin short positions, totaling over $1 million in the past week. Earlier, many market pundits predicted that the potential approval of the BTC ETF could be a “buy the rumor, sell the news” event, but the latest digital asset investment flow data contradicts that claim with significant outflows in the past several weeks.
The Grayscale Bitcoin Trust traded nearly half a billion on Jan. 8, which is more than 99% of the 3,000 current ETFs in the market. On the same day, the Bitcoin price hit another yearly high of over $46,000, trading at $46,865 at the time of writing.
ETPs are a type of financial instrument bought and sold on a regulated stock exchange that allows investors to gain exposure to the price movements of an underlying crypto asset without owning the asset itself.
The year has started with bullish sentiment in the crypto community, with a series of key milestone events slated for 2024. In addition to the potential imminent approval of the first spot Bitcoin ETF in the U.S., the Bitcoin halving is scheduled for April.
Source: Cointelegraph.com
