Bitcoin institutional revenue to peak at $1B by 2023 amid BTC supply squeeze
Bitcoin (BTC) institutional investment vehicles have seen more than $1 billion in new inflows in less than two months.
In its latest weekly report on November 13, crypto asset management company CoinShares reinforced its narrative that bitcoin and altcoins are once again attracting capital.
Crypto institutional product AUM increased by 99% year-on-year.
Bitcoin, Ether (ETH) and some major altcoins are enjoying price gains as excitement over the growth of the United States' first-place exchange-traded fund (ETF) grows.
As of November 2022, the total value of the crypto market has increased by $600 billion, according to data from TradingView.
However, the past two months have seen a significant increase in the amount of money flowing into crypto investment products, according to CoinShares.
“Digital asset investment products saw a total of US$293 million in inflows last week, bringing this 7-week inflow to over US$1bn, leaving year-to-date inflows to US$1.14bn, the third-highest annual inflow on record,” he summarized.
In the year Among the striking statistics that will mark crypto's renaissance in 2023 are assets under management (AUM) for crypto exchange-traded products (ETPs).
Since the beginning of the year, it has practically doubled, gaining nearly 10% in the past week alone.
“At US$44.3bn, total AuM in May 2022 is the highest since the collapse of major crypto funds,” CoinShares noted.
The report added that long BTC holders took the lion's share.
“Bitcoin saw a total of US$240m inflows last week, pushing year-to-date inflows to US$1.08bn, while short-Bitcoin saw US$7m exits, indicating continued positive sentiment,” he said.
“This is what adoption looks like.”
Meanwhile, the renewed interest in the on-chain analysis prompted Glasnode to re-evaluate Bitcoin's supply dynamics.
Related: Funding Rates Echoes $69K BTC Price — 5 Things to Know in Bitcoin This Week
With the next block grant just five months away, BTC is 2.4 times the amount of money it's releasing to storage space, according to the latest edition of its weekly newsletter, “The Week On-Chain.”
“The fourth stripping event is fast approaching and represents an important fundamental, technical and philosophical milestone for Bitcoin. It's a tricky field for investors given the impressive return profile of previous cycles,” he opined.
One of the various accompanying charts showed the storage of BTC supply by long-term holders, or LTHs – entities that hold coins for 155 days or more.
Next, Philip Swift, creator of the statistics platform Look at Bitcoin, describes the growing number of wallets, large and small.
“This is what adoption looks like,” he told X subscribers that day.
This is what adoption looks like. #bitcoin
Free live chart: pic.twitter.com/twnAE8ZoC4
— Philip Swift (@PositiveCrypto) November 13, 2023
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
