Crypto Investments Hit $4.3 Billion Amid Interest in Bitcoin ETFs

Cryptocurrency investments continue to record growing capital inflows, fueled by Bitcoin spot ETF (exchange-traded funds) approvals in January.

While Bitcoin recorded up to $1.97 billion in inflows last week, Ethereum recorded positive flows of $69 million.

Crypto investment reached 2 billion dollars last week

Cryptocurrency investment has accumulated to 4.3 billion dollars in five weeks. Last week saw positive flows of 2 billion dollars, BTC leads with 1.97 billion dollars, followed by ETH with 69 million dollars.

“Ethereum also had a big week, with $69 million in revenue, the highest since March,” BTC veteran Kyle Chase wrote in a Monday post on X.

Bitcoin has seen 19 consecutive days of inflows, driven by increased demand from institutions and retail traders. ETFs currently account for 5% of all Bitcoin, with 34 ETFs controlling over 1,000,000 BTC. Last week, 11 ETFs approved by the US Securities and Exchange Commission (SEC) bought 25,729 BTC. This amount is almost eight times greater than the 3,150 BTC mined during the same period.

Read more: How to trade Bitcoin ETF: A step-by-step approach

Bitcoin ETFs in the US now account for about 5% of all BTC. According to Coinglass, spot funds held a total of 1,043,775 BTC as of Monday. There are currently 19.71 million BTC in circulation, worth $1.36 trillion at current Bitcoin prices, with the final limit of 21 million BTC expected to be reached within the next century.

Even as investors seek exposure to BTC through ETFs, Bitcoin's price has not recovered from its March 14 all-time high of $73,777. Experts attribute this to a significant shortage among hedge funds.

“Why Is Bitcoin Price Suppressed While ETFs Are Stacking Like Crazy? Because hedge funds are shorting BTC to a great extent,” noted trader Quinten.

Hedge funds have historically shorted BTC as part of a trading strategy in which they sell futures contracts to profit from perceived price declines. Sina G, founder of BTC-focused 21st Capital, suggests that hedge funds taking short positions in BTC may signal their interest in a profitable trading strategy. This involves shorting the futures while simultaneously buying the asset to take advantage of the price difference between the spot and futures markets.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

Normally, a short squeeze occurs. This happens when the price of Bitcoin starts to rise, forcing people with short positions to buy BTC at higher prices to cover their positions. This increase in buying pressure drives up the price of Bitcoin, prompting many short sellers to exit their positions and leading to a higher price move.