Crypto Stocks Soar Following Massive $1.8 Billion Bitcoin and ETH ETF Inflow
In a striking turn of events, the cryptocurrency market witnessed a surge in crypto stocks following a massive inflow of $1.8 billion into the Bitcoin and Ethereum markets. Meanwhile, during the pre-market session on March 4, stocks such as Coinbase (COIN), MicroStrategy (MSTR), BlackRock iShares Bitcoin Trust (IBIT), and Robinhood (HOOD) rebounded significantly, driven by a wave of positive sentiment. Created by CoinShares’ latest report.
Bitcoin and Ethereum ETFs Record $1.84 Billion Weekly Inflows
CoinShares’ report highlighted a phenomenal $1.84 billion inflow into digital asset investment products, making it the second-largest weekly inflow on record. This rise was accompanied by record-breaking trading volumes exceeding $30 billion during the week.
Meanwhile, Bitcoin dominated inflows, accounting for 94% of the total at $1.73 billion. Additionally, Ethereum also saw a significant increase, hitting the highest level since mid-July 2022 with total inflows of $85 million. This positive flow appears to have triggered the rally in crypto stocks in today’s pre-market session.
In addition, the report underlined the superiority of the USA in increasing the net inflow of 1.88 billion dollars. However, this was partially offset by outflows from incumbents such as Grayscale, which witnessed $1.46 billion outflows from its Bitcoin ETF.
However, new Bitcoin ETF issuers managed to offset this trend and attracted total inflows of $3.2 billion. While Bitcoin remains the primary focus of investors, the resurgence of Ethereum has signaled renewed interest in alternative cryptocurrencies. Additionally, gains in crypto stocks also reflect traders’ growing interest in the digital asset sector.
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Crypto Stocks Soar Amid Inflow Surge
Crypto stocks received significant interest from investors following the release of the report, indicating growing optimism among investors. For example, Coinbase (COIN) shares rose 6.57% to $219.29 in the pre-market session, while MicroStrategy (MSTR) rose 8.58% to $1,171.88. On the other hand, BlackRock’s iShares Bitcoin Trust (IBIT) rose 3.42% to $37.22, and Robinhood (HOOD) shares rose 1.93% to $16.90.
However, despite the general positivity, market reactions differed between regions. While there was an inflow of 20 million dollars especially to Switzerland, there was an outflow of 32 million dollars, 35 million dollars and 23 million dollars from Sweden, Germany and Canada, respectively.
Interestingly, short-term investors doubled their positions with an additional $22 million inflow into short Bitcoin investment products; This reflects a hedging strategy amid Bitcoin’s recent price movements.
Fund inflows to Polygon and outflows from solana indicate that investor preferences have changed in the altcoin market. The dynamic nature of the cryptocurrency landscape was clearly evident as Polygon received inflows of $7.6 million, representing 22% of its Assets Under Management (AuM), and Solana witnessed outflows of $12 million.
However, the rise in crypto stocks can also be attributed to the Bitcoin price crossing the $65,000 mark for the first time since November 2021. On the other hand, Ethereum price also traded above the $3,500 level on Monday, indicating that the bullish trend is continuing. Inside the market.
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A seasoned professional with 3 years of experience in the financial market, Rupam has honed his skills as a meticulous research analyst and insightful journalist. She enjoys exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond traditional boundaries. His contributions include breaking news, examining AI-related developments, providing real-time crypto market updates, and providing insightful economic news. Rupam’s journey is marked by his passion to demystify the intricacies of finance and deliver impactful stories that will resonate with diverse audiences.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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