The anticipated sell-off in altcoins has commenced, with Bitcoin (BTC) attracting more attention due to the expected ETF approval, while altcoins are experiencing a decline. This could be a “sell the news” event for altcoins, which are already retreating to support zones. Meanwhile, institutional interest in cryptocurrencies is surging, with the GBTC case marking a pivotal moment.
CoinShares’ weekly reports measure institutional interest in cryptocurrencies. The latest data shows that in the first week of 2024, crypto investment funds saw an influx of $151 million. Following Grayscale’s legal victory against the SEC, total inflows have reached $2.3 billion.
BTC witnessed the largest inflow of $113 million, while the ShortBTC fund, used to bet against Bitcoin, saw an outflow of $1 million. Despite the absence of a spot-based ETF in the U.S., 55% of the inflows originated from there, with Germany and Switzerland accounting for 21% and 17% respectively.
Ethereum has seen a total inflow of $215 million over the last nine weeks. In contrast, Solana experienced an outflow of $9 million in the first week of the year. Other altcoins such as Cardano, Avalanche, and Litecoin have seen inflows ranging between $3.7 million and $1.4 million.