After a decade of trying, the US Securities and Exchange Commission (SEC) has finally approved spot bitcoin ETFs. These products allow retail customers and traditional financial institutions to access the price of Bitcoin through standard brokerage applications without relying on cryptocurrency exchanges.
This excitement is being reflected in altcoin prices as data indicates a notable influx of capital into the cryptocurrency market.
Spot Bitcoin ETF craze boosts capital inflow
At the beginning of the year, the amount of USD ERC20 stablecoins on exchanges was approximately $18 billion. But as of this week, it has risen to $20 billion.
According to CryptoQuant's latest analysis, this $2 billion inflow indicates an influx of capital into the cryptocurrency market, impacting the current prices of altcoins.
The excitement surrounding Bitcoin ETFs is expected to contribute to the continued flow of capital into the overall ecosystem. Despite the downward trend since the end of 2022, this pattern has continued into 2023.
Notably, there is a reversal in this trend from 2024, indicating a potential increase in risk appetite. This shift may ultimately benefit the entire digital assets sector.
The Spot Bitcoin ETF sees $4 billion in trading volume for the first time
Along with increased capital flow into the market, the 11 spot Bitcoin ETFs achieved trading volume exceeding $4 billion after their debut. Grayscale dominated the majority of this $1.9 billion business.
DCG is followed by BlackRock and Fidelity Investments, with trading volumes of $942 million and $628 million, respectively.
Bitcoin over-the-counter (OTC) trading on Coinbase reached a record high of $7.7 billion on January 11. This increase coincides with a significant increase in the total trading volume of cryptocurrency exchanges, reaching $52 billion, the highest level since March 2023.
Meanwhile, a recent report from Standard Chartered Bank predicts that Bitcoin ETFs could attract inflows of between $50 billion and $100 billion by 2024. This expected inflow is seen as a crucial catalyst for the potential rise in Bitcoin's value, with expectations reaching… 200 thousand dollars. By the end of 2025.
