Money continues to flow as Bitcoin returns to the upper atmosphere.
Major investors have pumped money into crypto-focused funds, pushing assets under management to the highest level since early 2022, according to a Monday report from CoinShares said-Before The price of Bitcoin broke the $50,000 mark For the first time since December 2021.
Following the approval of the new spot exchange-traded funds (ETFs) for Bitcoin (BTC), large amounts of cash have entered the crypto space. According to CoinShares, $1.1 billion flowed into the fund, which focuses on digital assets, last week. Assets under management currently stand at $59 billion.
Most of the money is concentrated in the new spot BTC ETFs, CoinShares said. The European fund manager tracks how much money flows into institutional funds such as Grayscale and BlackRock's iShares ETF.
On January 10, the US Securities and Exchange Commission approved ten spot BTC ETFs after a decade of rejections. Such investment vehicles allow traditional investors to enter the cryptocurrency space.
Following its approval last month, the price of BTC took a hit when Grayscale, which previously acted like a closed-end fund for a spot Bitcoin ETF, began selling BTC to its custodian Coinbase.
But sales have slowed and money has continued to flow into the funds, causing the price of BTC to rise slightly.
CoinShares added that while 98% of inflows were focused on BTC, money also reached funds that gave investors exposure to Ethereum (ETH) and Cardano (ADA).
According to CoinGecko, BTC rose above $50,000 per coin on Monday morning Eastern Standard Time, reaching $50,256. It has since fallen again and is currently trading at $49,862.
BTC reached its all-time high of $69,044 in November 2021.
Edited by Ryan Ozawa.
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