Bitcoin and Ethereum ETFs Surge as Layer 2 Networks See Growth Amid Institutional Interest

cryptosummary

— 2 min read
Bitcoin and Ethereum ETFs Surge as Layer 2 Networks See Growth Amid Institutional Interest

The cryptocurrency market is witnessing notable movements this week, with significant inflows into Bitcoin and Ethereum ETFs, alongside a slight increase in total value locked (TVL) in Layer 2 networks.

According to data from L2 Beat, the total TVL across Layer 2 networks has reached $8.78 billion, up from $8.72 billion yesterday. The top five Layer 2 networks by TVL are:

  • Base: Current TVL at $2.48 billion, an increase of 1.37%.
  • Arbitrum: Current TVL at $2.41 billion, rising by 1.59%.
  • Scroll: Current TVL at $969.44 million, down by 1.44%.
  • Optimism: Current TVL at $679.94 million, up by 0.82%.
  • Blast: Current TVL at $645.37 million, decreasing by 0.79%.

In the broader market, Bitcoin's price has surged to $68,810, marking a significant increase from $67,337 yesterday. This price movement aligns with the recent influx of institutional investment, particularly from BlackRock, which has seen its Bitcoin ETF attract over $1 billion in inflows this week alone. This influx has contributed to a 10% gain in Bitcoin's price over the past seven days.

Ethereum's price has also seen a rise, currently sitting at $2,657, up from $2,604 yesterday. Fidelity has taken a lead in Ethereum ETFs with $31 million in inflows, reflecting growing institutional interest in Ethereum as well.

This week has also seen substantial fundraising activity within the crypto space, totaling $20.15 million today. The largest rounds include:

  • zkPass: $12.50 million
  • Drop Protocol: $4.00 million
  • Hyve DA: $1.85 million

For the current week, cumulative fundraising has reached $939.90 million, indicating robust activity in the sector.

In a notable move towards mainstream adoption, Morgan Stanley has invested $272.1 million in spot Bitcoin ETFs. This highlights a growing trend among institutional investors looking to diversify their portfolios with digital assets.

On the infrastructure side, DBS Bank has launched its “DBS Token Services,” providing blockchain-based banking solutions for institutions. This service aims to facilitate real-time payment settlements using smart contracts, enhancing security and transparency in transactions.

In other news, the FBI has arrested Eric Council Jr., the hacker behind a fake Bitcoin ETF announcement via the SEC's X account. This incident caused a temporary price surge earlier in the year, underscoring the ongoing challenges of misinformation in the crypto space.

As the market evolves, the integration of institutional investments and technological advancements continues to shape the landscape of cryptocurrency.

Read more