Cryptocurrency is gradually becoming very popular in the world. This is evident from the fact that highest inflow of crypto funds has created a record. As per CoinShares, companies such as Grayscale, 21 Shares, and ProShares have recorded very high inflows this year. The yearly inflows of crypto funds are the third highest on record. Simultaneously, total assets have risen to 9.6% last week and 99% since 2023.
Bitcoin and Ethereum’s Record Gains
Ethereum has witnessed the highest inflows since August 2022. Crypto funds witness a real turnaround in sentiment. The total assets under management are now the highest since the fund collapsed in 2022. There is a lot of euphoria regarding Ethereum’s rival cryptocurrency Bitcoin. In the Bitcoin spot exchange, the digital asset investment products surged to around the $250 million mark for three consecutive weeks. Bitcoin has gained 120% this year and Ethereum has gained 76%. The reason for their rise is because of optimism. The possible source of this optimism is that the US may see its first spot crypto ETF.
Factors Responsible for Highest Inflow
Cryptocurrencies are volatile, and price fluctuations happen all the time. However, the year 2023 has been more positive for cryptocurrencies like Bitcoin and Ethereum. The trends suggest that crypto funds are driven mainly by improving the outlook for the world’s largest economy, the US. Investors are also excited since they anticipate the US Securities and Exchange Commission (SEC) may approve Bitcoin as an exchange-traded fund. Highest inflow happens because of this trend.
Recently, in October 2023, Bitcoin traded as high as $35,198 on the strength of ETF optimism and flight-to-safety buying amid raging wars in the Middle East. The prices of Ethereum were also high and it assumed a spot Bitcoin ETF approval. Ethereum’s prices also rose considerably in October for the same ETF approval reason. The price of Ethereum also rose to $1798. By the end of October, Bitcoin was up by 27%, while its rival Ethereum was up by 8%. In 2023, the Bitcoin prices are at an all-time high by 107%. Ethereum’s prices are at an all-time high by 49%.
Also Read- Blockchain Identity Management Market is Growing at a CAGR of 84% from 2023-2028
Conclusion
The positive market factors may continue to support high yearly inflows for both Bitcoin and Ethereum. This is essentially good news for crypto investors. A consistent gain in the crypto market essentially implies that there are high levels of enthusiasm among investors. 2023 is indeed a good year for cryptocurrencies like Bitcoin and Ethereum. Their record gains may further encourage investors to invest in cryptos.
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