In a stunning turn of events, the cryptocurrency market has seen a surge in crypto stocks following a massive inflow of $1.8 billion into Bitcoin and Ethereum markets. Meanwhile, in the pre-market session on March 4, stocks such as Coinbase (COIN), MicroStrategy (MSTR), BlackRock iShares Bitcoin Trust (IBIT) and Robinhood (HOOD), among others, rose significantly, riding the wave of positive sentiment. generated by the latest report from CoinShares.
Bitcoin & Ethereum ETFs Notes $1.84 Billion Weekly Inflows
CoinShares’ report highlighted an extraordinary inflow of $1.84 billion into digital asset investment products, marking the second largest weekly inflow on record. Notably, this surge was accompanied by record-breaking trading volumes, which exceeded $30 billion for the week.
Meanwhile, Bitcoin dominated the inflows, accounting for 94% of the total at $1.73 billion. In addition, Ethereum also saw a significant rise, with inflows totaling $85 million, the highest since mid-July 2022. This positive inflow seems to have fueled the surge in crypto stocks in the premarket session today.
Additionally, the report underscored the dominance of the United States in driving net inflows, which totaled $1.88 billion. However, this was partially offset by outflows from established entities such as Grayscale, which saw $1.46 billion in outflows from its Bitcoin ETF.
Nevertheless, new Bitcoin ETF issuers managed to buck this trend, attracting a total of $3.2 billion in inflows. While Bitcoin remained the primary focus for investors, Ethereum’s resurgence signaled renewed interest in alternative cryptocurrencies. In addition, the gains in the crypto stocks also reflect the growing interest of traders in the digital asset sector.
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Crypto stocks rise amid inflow surge
The crypto stocks gained remarkable traction with investors after the release of the report, suggesting a growing optimism among the investors. For example, Coinbase ( COIN ) stock rose 6.57% to $219.29 in the premarket session, while MicroStrategy ( MSTR ) rose 8.58% to $1,171.88. On the other hand, BlackRock’s iShares Bitcoin Trust ( IBIT ) saw gains of 3.42% to $37.22, and Robinhood ( HOOD ) stock rose 1.93% to $16.90.
However, despite the overall positivity, market reactions varied between regions. Switzerland in particular experienced inflows of $20 million, as opposed to outflows from Sweden, Germany and Canada of $32 million, $35 million and $23 million respectively.
Interestingly, short investors doubled their positions with an additional $22 million inflow into short Bitcoin investment products, reflecting a hedging strategy amid Bitcoin’s recent price moves.
The inflow of funds to Polygon and the outflow from Solana indicated that investor preferences within the altcoin market are shifting. With Polygon receiving $7.6 million in inflows, representing 22% of its assets under management (AuM), and Solana witnessing outflows of $12 million, the dynamic nature of the cryptocurrency landscape was evident.
However, the surge in the 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, the Ethereum price also traded above the $3,500 level on Monday, suggesting a hovering bullish sentiment. in the market.
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The content presented may include 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 holds any responsibility for your personal financial loss.
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