CoinShares published a new report, which revealed that institutional investors have kept pouring cash into crypto funds in light of the possibility of a Bitcoin ETF being approved.
According to the European digital asset manager, last week saw total deposits of $346 million made in crypto exchange-traded products (ETPs).
This is the highest the net inflows have been for about nine weeks in a row, which has brought the total deposits year-to-date to $1.5 billion.
90% of the net inflows from institutional investors were deposited into Bitcoin-specific funds, which is around $312 million.
Due to the rising prices and the net inflows, crypto funds have seen a rise in the total value of assets under management to $45 billion.
The ETP umbrella also includes exchange-traded funds (ETFs), but there is one difference; a spot bitcoin ETF would track the price of Bitcoin in real time, something that no existing Bitcoin ETF product does.
However, the US Securities and Exchange Commission (SEC) has cited risks of crypto market manipulation and volatility in its refusal to approve a spot Bitcoin ETF.
But, many industry observers have claimed that there is too much smoke for there not to be fire, which means that approval just might come.
Even without approval, the hijinks have already begun. There was a 10% rise in its price in October over a false report about the BlackRock Bitcoin ETF being approved.
Recently, the Wall Street titan’s name was used for registering a fake iShares XRP Trust. This resulted in a rise in price for the token but declined when BlackRock disclosed that it was a fake filing.
The Delaware Department of Justice (DOJ) was notified of the matter within a day.
Meanwhile, there are a number of players who have submitted their applications for a Bitcoin ETF product.
CoinShares is not just an observer, as it has also submitted a similar application. The company had announced two weeks earlier that it had gotten the option to acquire Valkyrie’s ETF business.
The digital asset manager is based in the US and CoinShares has until January 10th to decide if it wants to go ahead with the deal.
Like BlackRock and VanEck, Valkyrie has also filed a spot Bitcoin ETF application in the United States, which had first been submitted in 2021.
The SEC rejected the application, which prompted the company to submit another application in June 2023 for its Valkyrie Bitcoin Fund.
According to most experts, the SEC will likely grant approval for a spot Bitcoin ETF in the coming year, as it is running out of reasons to do so.
This is going to give not just Bitcoin, but the entire crypto market, a good and solid boost, and the total market cap is expected to rise to new highs.