In a stunning turn of events, the cryptocurrency market has witnessed a surge in crypto stocks following a massive influx of $1.8 billion into Bitcoin and Ethereum markets. Meanwhile, the pre-market session on March 4 saw stocks like Coinbase (COIN), MicroStrategy (MSTR), BlackRock iShares Bitcoin Trust (IBIT), and Robinhood (HOOD), among others, rallying significantly, riding on the wave of positive sentiment generated by the latest report from CoinShares.
Bitcoin & Ethereum ETFs Notes $1.84 Bln Weekly Inflow
CoinShares’ report highlighted an extraordinary influx of $1.84 billion into digital asset investment products, marking the second-largest weekly inflows on record. Notably, this surge was accompanied by record-breaking trading volumes, surpassing $30 billion for the week.
Meanwhile, Bitcoin dominated the inflows, accounting for 94% of the total at $1.73 billion. In addition, Ethereum also saw a significant uptick, with inflows totaling $85 million, the highest since mid-July 2022. This positive influx seems to have triggered the rally in crypto stocks in the pre-market session today.
Besides, the report underscored the dominance of the United States in driving net inflows, which amounted to $1.88 billion. However, this was partially offset by outflows from established entities like Grayscale, witnessing $1.46 billion in outflows from its Bitcoin ETF.
Nevertheless, new Bitcoin ETF issuers managed to counterbalance this trend, attracting a total of $3.2 billion in inflows. While Bitcoin remained the primary focus for investors, Ethereum’s resurgence signaled renewed interest in alternative cryptocurrencies. In addition, the gains in the crypto stocks also reflect the growing interest of traders in the digital asset sector.
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Crypto Stocks Rallies Amid Inflow Surge
The crypto stocks have gained notable traction from investors following the report’s release, suggesting a growing optimism among the investors. For instance, the Coinbase (COIN) stock surged 6.57% in the pre-market session to $219.29, while MicroStrategy (MSTR) soared 8.58% to $1,171.88. On the other hand, BlackRock’s iShares Bitcoin Trust (IBIT) noted gains of 3.42% to $37.22, and Robinhood (HOOD) stock rose 1.93% to $16.90.
However, despite the overall positivity, market responses varied across regions. Notably, Switzerland experienced inflows of $20 million, contrasting with outflows from Sweden, Germany, and Canada totaling $32 million, $35 million, and $23 million, respectively.
Interestingly, short investors doubled down on their positions with an additional $22 million inflow into short Bitcoin investment products, reflecting a hedging strategy amidst Bitcoin’s recent price movements.
The influx of funds into Polygon and the outflows from Solana hinted at shifting investor preferences within the altcoin market. With Polygon receiving $7.6 million in inflows, representing 22% of its Assets under Management (AuM), and Solana witnessing outflows of $12 million, the dynamic nature of the cryptocurrency landscape was evident.
However, the surge in the crypto stocks could be also attributed to the Bitcoin price crossing the $65,000 mark for the first time since November 2021. On the other hand, the Ethereum price also traded over the $3,500 level on Monday, suggesting a hovering bullish sentiment in the market.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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