A total of $1.7 billion have been pumped into Bitcoin (BTC) since the beginning of this year, and in the past weeks alone, another $20 million worth of institutional funds have found their way in. Further, the large proportion of capital has been channeled by investors towards Bitcoin as this demonstrates high demand.
ETF Excitement Fuels Bitcoin’s Surge
With all the hype about a possible green light being given to a twelve of index-based spot exchange traded funds, this is despite the fact that bitcoin is experiencing spectacular growth. This may create a positive mood among investors who will perceive it as an incentives needed for conventional finance participants to venture into the crypto market.
The Bull run in Bitcoin’s Price Levels
A remarkable increase of more than sixty percent is currently experienced by the bitcoin ongoing bull run, which started in the middle of October. Despite the uncertainty, it managed to recapture important prices, last registered during the start of the bearish trend in May 2022. Nevertheless, it is important to point out that the current charts show prices below 42,000 USD for BTC.
Diverse Perspectives in Bitcoin
However, not all the investors have been betting that Bitcoin’s value will continue rising. It shows that there was $8.6 million put in short-Bitcoin positions last week, which is an indication that certain investors expect the market trend to be downwards. The open interest (OI) of BTC futures on the global derivative exchange – CME has now hit a two year high and stands at $5.3 billion. The rise began with this OI, which increased by almost 200% since then.
Five BTC contract of CME’s stand futures, acting as an institution indicator of digital money interests. Therefore, influential investors are believed to be buying more shares to represent the bitcoins on behalf of large crypto holders. According to Santiment data, there were more than one thousand coin-holding-entities in H2 of 2022. Essentially, this trend shows additional purchases of Bitcoins by institutions and supports further growth of the cryptocurrency.
Overall, $43 million worth of coins have been added to the crypto market over the last eleven weeks in succession. The positive outlook on spot ETFs has also worked in favor of Ethereum (ETH) and the wider altcoins sectorscape.