After 10 years of difficult trials, the U.S. Securities and Exchange Commission (SEC) has finally approved a spot Bitcoin ETF. These products allow retail customers and traditional financial institutions to access Bitcoin prices through standard intermediary apps without relying on crypto exchanges.
Data shows notable capital inflows into the crypto market, and this excitement is reflected in altcoin prices.
Spot Bitcoin ETF craze accelerates capital inflows
At the beginning of this year, the amount of USD-denominated ERC20 stablecoins on exchanges was approximately $18 billion. But as of this week, it has soared to $20 billion.
According to the latest CryptoQuant analysis, this $2 billion inflow represents a flow of capital into the crypto market, influencing the current prices of altcoins.
The excitement surrounding the Spot Bitcoin ETF is expected to contribute to continued capital inflows into the entire ecosystem. This pattern continued until 2023, although there was a downward trend after the end of 2022.
Notably, this trend has reversed as of 2024, indicating a potential increase in risk appetite. This change could ultimately benefit the entire digital asset sector.
Spot Bitcoin ETF debuts with $4 billion in trading volume
In addition to increasing capital inflows to the market, 11 spot Bitcoin ETFs have generated more than $4 billion in trading volume since their debut. Grayscale accounted for most of this trading activity with his $1.9 billion.
The DCG subsidiary was followed by BlackRock and Fidelity Investments, with volumes of $942 million and $628 million, respectively.
Bitcoin over-the-counter (OTC) trading on Coinbase reached an all-time high of $7.7 billion on January 11th. This surge coincided with a notable increase in trading volumes across crypto exchanges, reaching $52 billion, the highest since March 2023.
Meanwhile, a recent report by Standard Chartered Bank predicts that Bitcoin ETFs could attract between $50 billion and $100 billion in inflows by 2024. This expected inflow is considered to be a key catalyst for a potential surge in Bitcoin value, with predictions reaching a staggering $200,000. By the end of 2025.
