Bitcoin investment funds have reached a record high, holding 863,434 BTC, according to ByteTree. In recent weeks, digital asset funds have attracted significant inflows as optimism about a spot bitcoin ETF spreads across the broader crypto markets.
BTC holdings in Bitcoin investment funds have risen to their highest level ever, thanks in part to the ongoing rally of the token and the anticipation of an approved spot exchange-traded fund (ETF). Investment advisory firm ByteTree reports that token holdings this week reached 863,434, surpassing the previous record high set in April 2022. Over the past month, funds have added approximately 22,100 bitcoins.
Charlie Morris, the founder of ByteTree, stated, “Little wonder the price has been so strong of late.” In addition to Bitcoin, broader crypto funds have also seen an increase in fresh cash flow. CoinShares, a digital asset management firm, reported $767 million in net inflows over the past six weeks, the highest amount seen since the 2021 bull market.
James Butterfill, Head of Research at CoinShares, noted that inflows into digital asset funds this year have exceeded $1 billion. Bitcoin is the main driver of these inflows as investors chase rising prices ahead of the expected imminent approval of multiple spot BTC ETFs.
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, believes there is still a long way to go before the spot ETF approval is priced in. Despite recent news, Hougan suggests that the majority of financial advisors continue to believe a spot ETF will not be approved until 2025 or later.
BTC reached an 18-month high of $37,960 earlier this week, marking a 39% increase in the past month and a 125% increase year-to-date. It is currently trading at $37,300.
Edited by Stephen Alpher.