Wall Street Titans Boost Crypto Stakes: US Bitcoin ETFs Garner $2.4B In Q2 Inflows
17 August 2024 - 3:30PM
NEWSBTC
The crypto market continues to be influenced primarily by broader
macroeconomic conditions, with the latest US Consumer Price Index
(CPI) report providing a glimmer of optimism for risk assets,
including cryptocurrencies. Crypto Awaits Fed’s Move According to a
recent Coinbase report, the slightly softer-than-expected July CPI
print of 2.9% year-over-year – the lowest level in three years –
has “calmed market concerns and reinforced expectations of
impending Fed rate cuts at the September 17-18 Federal Open Market
Committee (FOMC). Per the report, this has been viewed as positive
news for risk sentiment, as it may help dispel fears of a potential
US recession, which Coinbase believes is more important than the
total size of Fed cuts this year. Related Reading: MATIC Set For
Rebranding In Early September: Will Polygon Prices Recover After
Sinking 65%? However, the crypto market has remained range-bound,
with Bitcoin (BTC) unable to break through the $61,000 level.
Sentiment has slowed due to a lack of crypto-specific catalysts,
and perpetual futures funding rates in BTC have turned negative
this week, potentially indicating lower trader activity. In the
Ethereum (ETH) ecosystem, gas prices have slumped, which could
signal a decline in network activity. On a more positive note, spot
Ethereum ETFs in the US have seen inflows this week. ETF Inflows
Signal Strong Institutional Interest The report also
highlighted the growing institutional adoption of crypto, as
evidenced by the latest 13-F filings for US spot Bitcoin ETFs. The
data, which captures the state of institutional ownership as of
June 30, 2024, reveals notable new holders such as Goldman Sachs
($412 million) and Morgan Stanley ($188 million). The ETF complex
saw net inflows of $2.4 billion during this period, despite a drop
in total assets under management (AUM) from $59.3 billion to $51.8
billion, due to Bitcoin’s price decline from $70,700 to $60,300.
Nonetheless, Coinbase analysts believe the continued ETF inflows
during Bitcoin’s underperformance may be a “promising indicator of
sustained interest in crypto from the new pools of capital that the
ETFs give access to.” They also expect the proportion of
investment advisor holdings to increase as more brokerage houses
complete their due diligence on these funds. Related Reading: Silk
Road Bitcoin Are ‘Almost Certainly’ Sold By US Gov, Claims Lawyer
Looking ahead, the report notes that the stage is set for market
dynamics to be tested at the upcoming Jackson Hole Economic
Symposium, a pivotal event that could sway sentiments and shape the
trajectory of crypto markets. While short-term fluctuations
and market slowdowns may dampen immediate enthusiasm, Coinbase
highlights the underlying currents of institutional interest and
the evolving landscape of ETF inflows that paint a promising
picture for crypto prices for the rest of the year. At the time of
writing, BTC is trading at $59,679, regaining the top of the range
seen in recent days between $57,000 and $60,000. Featured
image from DALL-E, chart from TradingView.com
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