Investors are channeling more than $1 billion into cryptocurrency asset investment products this year, buoyed by the expectation of a spot Bitcoin exchange-traded fund (ETF) approval, according to CoinShares' James Butterfill. The market has seen a significant uptick in activity, with ProShares’ Bitcoin Strategy ETF (NYSE: BITO) experiencing nearly double the assets over the last month, driven by market appreciation and inflows totaling $240 million.

This surge in interest is part of a broader trend that has digital assets on track for their third-highest year of allocations. Investment into products like Grayscale's Bitcoin Trust and Bitwise's 10 Crypto Index Fund has soared to over $1.07 billion, marking a substantial increase from the $847 million reported earlier in the week. This growth comes after a challenging previous year when inflows dwindled to $389 million amid the collapse of several high-profile firms and Bitcoin's price dip to $15,649.

Bitcoin-related products have dominated this year's allocations, with over $1 billion in inflows, while Solana has attracted $119 million. Conversely, Ethereum and Tron-related products have experienced outflows of $77 million and $51 million respectively. Amidst this shifting landscape, ProShares’ BITO stands out, with Bloomberg’s Eric Balchunas highlighting its potential to set a new trading volume record this week with about $2 billion traded.

The anticipation for a spot Bitcoin ETF has also had a ripple effect on other cryptocurrencies. On Wednesday, Bitcoin’s price surpassed $35,000 due to the ETF expectations, accounting for 96% of this year's allocations into Bitcoin-related products. Ethereum has seen its price jump by 16% over the week to approximately $2,100. Notable developments include filings by BlackRock (NYSE:BLK) and Franklin Templeton with the SEC and NASDAQ for Ethereum-based ETFs and an increase in altcoin activity on Ethereum's network leading it to become deflationary again.

https://www.investing.com/news/cryptocurrency-news/crypto-investment-inflows-top-1-billion-on-etf-anticipation-93CH-3231284