Despite a recent uptick in market interest, institutional investors continue to choose Bitcoin (BTC) as their cryptocurrency of choice. A new study from CoinShares shows that Bitcoin’s investment products have garnered a total of $310 million in inflows throughout the specified period, despite the uncertainty surrounding the Securities and Exchange Commission’s (SEC) approval of a spot BTC ETF. This occurs as BTC breaks out of a string of nine straight weeks of outflows, reiterating its market leadership.
Leading with a Strong Recovery is Bitcoin
The CoinShares study claims that after nine weeks of nonstop withdrawals, Bitcoin has emerged as the market leader and is driving the market’s recovery. $123 million has been invested over the previous 14 days alone, while short-BTC investment products lost $0.9 million, continuing their 10-week losing run. The overwhelming 98% market share that Bitcoin has throughout this time demonstrates its dominant position and the lack of adverse sentiment. At the time of writing, Bitcoin is worth more than $31,000.
Rise of Blockchain Equities and Alternative Coins
While Ethereum overtakes Bitcoin as the most popular alternative currency, with inflows of $2.7 million, it overtakes Bitcoin as the market leader. Additionally, blockchain-related stocks had inflows of $6.8 million, marking this industry’s first profitable week in nine weeks. Solana (SOL) saw $0.8 million in inflows. Other cryptocurrencies including Ripple (XRP), Cardano (ADA), and Polygon (MATIC) also had excellent results. However, as investors continue to participate in intense trading activity, Bitcoin continues to command the majority of the market’s attention.
Applications for Spot ETFs Drive Bitcoin’s Market Dominance
The excitement around several spot ETF applications, which picked up steam following BlackRock’s first push, is responsible for the current rise in Bitcoin’s market domination. The price of Bitcoin has increased by 25.2% since BlackRock’s application last month. Notably, comparable applications have also been made by other significant businesses including WisdomTree, Invesco, and Fidelity. For the first time in two years, Bitcoin has reclaimed the 50% market share with a current market domination of 51.23%.
SEC Approval Rumors and Growing Confidence
Despite the SEC having previously rejected spot BTC ETF applications, onlookers’ cynicism has given way to increased hope. The plan is likely to be approved, according to analysts at brokerage company Bernstein. They emphasize that they would prefer a regulated Bitcoin ETF that is overseen by already-established regulated exchanges and is managed by prominent Wall Street figures. This strategy is seen as a better way to address institutional gaps than using goods like Grayscale’s OTC offering.
The bullish outlook for bitcoin
The fear and greed index for bitcoin is still in the positive territory, remaining at 64. The market’s belief in Bitcoin’s upward trend and potential for future development is further bolstered by this mindset.
Institutional investors’ interest in bitcoin has risen significantly in recent weeks, leading to huge inflows of $310 million in only 14 days. Despite the lingering doubts around the SEC’s approval of a spot BTC ETF, Bitcoin has recovered from a protracted period of outflows, regaining its market leadership. Altcoins like Ethereum and blockchain equities have also seen encouraging developments as the spotlight on Bitcoin grows. Market watchers believe that the SEC’s approval of the spot ETF proposal might herald a move toward a regulated Bitcoin ETF that is backed by major Wall Street firms. As Bitcoin continues to display good performance and trading activity, the market outlook remains positive thanks to a bullish fear and greed index.