Bitcoin (BTC) has emerged as the primary target for institutional investors in recent weeks, as the cryptocurrency market continues to reach new heights this year.
According to a report released by CoinShares, Bitcoin investment products have experienced a substantial influx of $310 million over a 14-day period. This surge in investments comes at a time when skepticism surrounds the approval of a spot BTC exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC).
The report highlights that BTC is leading the way in recovering from nine consecutive weeks of outflows. In the past week alone, inflows for Bitcoin reached $123 million, while short-BTC investment products saw $0.9 million in outflows, extending their negative streak to 10 weeks.
Bitcoin’s dominance is evident, as it represents 98% of the entire market over the past two weeks. This is the second time this year that Bitcoin has commanded such a significant share, leaving no room for bearish sentiment. At the time of the report, Bitcoin’s price was trading above $31,000.
Among altcoins, Ethereum led the way with inflows of $2.7 million, while blockchain equities experienced inflows of $6.8 million, marking the end of a nine-week period of outflows. Other altcoins such as Ripple (XRP), Cardano (ADA), and Polygon (MATIC) also recorded positive figures, with Solana (SOL) posting $0.8 million in inflows.
James Butterfill, CoinShares’ Head of Market Research, emphasized that Bitcoin continues to be the primary focus for investors, given its high trading activity. The surge in Bitcoin’s market dominance can be attributed to the excitement generated by various spot ETF applications, initiated by BlackRock’s initial push. Since BlackRock submitted its application last month, the price of Bitcoin has surged by 25.2%. Additionally, companies like WisdomTree, Invesco, and Fidelity have also followed suit with their own ETF applications.
Currently, BTC holds a market dominance of 51.23%, reclaiming its 50% share for the first time in two years.
Although skepticism has arisen due to the SEC’s rejection of previous spot BTC ETF applications, some observers, including analysts at brokerage firm Bernstein, believe that the Commission is likely to approve the proposal. Bitcoin’s fear and greed index remain bullish, maintaining a score of 64, indicating a positive market sentiment.
