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Tuesday, September 27, 2022

Canada Takes Advantage Of The Dip As Bitcoin ETF Reaches Highs

The Canadian spot Bitcoin ETF purchased 2,006 BTC on Thursday and 2,780 BTC on Tuesday. In spite of the price correction that occurred in May, which pushed Bitcoin (BTC) to a low of $23,800, investors from institutions don’t appear to be willing to give up their faith in the crypto.

The Bitcoin Exchange Traded Fund Is Observing Steady Inflows

Since it was first introduced in February last year, the Purpose Bitcoin ETF has been receiving a steady amount of new assets over the course of the past 5 trading days. According to data from Glassnode that was reported by Jan Wustenfeld on Tuesday, the fund’s holdings have grown to 43,701.7 BTC since the beginning of the week. This is the largest level that has ever been recorded.

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It would appear that the inflows are in line with a wider short-term trend of buyers from institutions investing again in cryptocurrency. The most recent week saw cumulative inflows of $87 million for investment in digital asset products, with BTC products totaling about $69Mn of the total. This information was derived from data provided by Coinshares.

This news will bring relief after the outflow of digital assets that was caused by the market collapse that occurred last month. The week of May 24 saw a total of $141Mn in outflows from institutional funds during that time period. July 2021 was the month with the most outflow.

As per the report published by Coinshares, the total AUM (assets under management) metric is currently the least it has ever been since the middle of 2021. This is due to the fact that some buyers from institutions appear to be anticipating lower prices before beginning to reinvest cryptocurrency as part of their funds.

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Taking a look into the future of the market, analysts continue to have a pessimistic outlook over the short period, with some predicting that Bitcoin’s price could drop to a low of $14,000 while also labeling the most recent surge in price as a trap for bulls. In the meantime, predictions for the long term continue to point to a positive outcome, with holders continuing to accumulate Bitcoin and younger generations continuing to be bullish.

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