Meltem Demirors, the chief strategy officer (CSO) at digital asset manager CoinShares, believes that institutional investors are gearing up for a potential Bitcoin (BTC) rally. According to Demirors, there has been a significant increase in the inflow of investments into Bitcoin products over the past six weeks, signaling a growing interest from institutional buyers.
She explains, “If we look at flows into Bitcoin products, we have seen six weeks of consecutive [inflows]. We saw a little bit of an uptick in flows in August, then we traded really flat, very low volumes. The last six weeks we have seen a lot more activity, a lot more trading volume. We’re now at $760 million of flows into Bitcoin products in 2023. We have exceeded the levels in 2022. So I think those are all indicators that institutional buyers are starting to position around Bitcoin potentially rallying into year-end and into Q1 of next year.”
Demirors also expresses optimism about the approval of a Bitcoin spot market exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC) by the end of the year. However, she cautions that even if the highly anticipated Bitcoin investment product gets the green light from the SEC, it may take some time for capital to flow into the Bitcoin ETF.
“I think there’s a lot of enthusiasm. The question is how quickly will those flows materialize. I think it might take a few quarters but again, there’s just this tremendous demand,” says Demirors.
At the time of writing, Bitcoin is trading at $37,369. Despite the current price, institutional investors seem to be positioning themselves for a potential rally in Bitcoin, with a surge of investments flowing into Bitcoin products.
As the cryptocurrency market continues to evolve, it is essential for investors to conduct their due diligence and be cautious before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl advises investors to carefully consider their transfers and trades, as any losses incurred will be their responsibility.
In conclusion, the recent influx of investments into Bitcoin products by institutional buyers suggests growing confidence in a potential Bitcoin rally, positioning themselves for potential gains by the end of the year and into the first quarter of next year.