Bitcoin continues to trade sideways despite further inflows into the sector and the return of some signs about the launch of spot bitcoin ETFs
These quiet movements in the overall cryptocurrency market come despite some positive numbers in the sector that still reflect positive investor sentiment.
Bitcoin is still trading near the $34,400 level for more than a week, and Ethereum is trying to consolidate above the $1,806 level. Remarkably, Solana reached its highest levels in a year, crossing the $39 level at around 7:30 a.m. GMT.
These quiet movements in the overall cryptocurrency market come despite some positive numbers in the sector that still reflect positive investor sentiment. Last week witnessed the highest net inflows into cryptocurrency-related products since July of last year, with approximately $326 million. While bitcoin accounted for the most of these inflows, according to data provided by CoinShares.
In return for what happened at the beginning of last week that led Bitcoin’s rise, we saw the Invesco Galaxy Bitcoin ETF appear on the list of the Depository Trust and Clearing Corporation (DTCC) under the symbol BTCO. This listing came after the listing of asset manager BlackRock’s iShares Bitcoin Trust, which generated noise about the inevitability of launching the first spot bitcoin ETF.
In fact, the listing of the Invesco Galaxy Bitcoin Fund, as is the case with the BlackRock ETF, on the DTCC lists will in no way mean that the launch of the ETF will be approved by the SEC. Rather, it is a routine procedure in preparation for its launch, even if it has not yet received approval. This is what the clearing company spokesman said, and this is what the markets have already become aware of. It’s just hope, for now.
In the cryptocurrency market as well, Solana continues to attract attention after its record gains recorded today. These gains came after it took the lead in inflows into products related to alternative cryptocurrencies, with more than $23 million during the past week, bringing net inflows to about $98 million since the beginning of the year.
I believe that these flows reflect more investor confidence in the ability of Solana, whose market value is only $16 billion, to compete for the top spot in alternative currencies, led by Ethereum, which has a market value of more than $216 billion. However, the latter has continued to record net outflows from associated investment products, amounting to approximately $125 million since the beginning of this year.
In addition, Solana will be added to Google Cloud’s BigQuery services, which will allow for greater data analysis capabilities on the blockchain. I believe this also reflects greater recognition and appreciation for the efforts of the developers of Ethereum’s fiercest competitors.
On the other hand, there are still concerns about the possibility of the bankrupted FTX, which accounts for 16% of the total supply of Solana, selling huge quantities of it in order to pay the debts for creditors.