Crypto Investment Products See Inflows for Fourth Consecutive Week
Investment products in the crypto market have experienced inflows for the fourth week in a row, with Bitcoin leading the way. This surge is due to increased optimism surrounding the approval of spot Bitcoin exchange-traded funds (ETFs). According to CoinShares’ Digital Asset Fund Flows Weekly Report, inflows reached $66 million last week, and assets under management rose 15% from early September to reach $33 billion, the highest level since mid-August.
Bitcoin Accounts for 84% of Inflows
Bitcoin dominated these inflows with $55.3 million, accounting for 84% of the total. This brings the year-to-date Bitcoin product inflows to $315 million. While there were short-Bitcoin inflows at $23 million at the beginning of last week, these positions were significantly reduced by the end of the week, with net inflows of just $1.7 million. This suggests that short sellers are losing confidence.
In contrast, Solana attracted $15.5 million in inflows, making it the most popular altcoin with a year-to-date total of $47 million. However, Ethereum saw outflows of $7.4 million, making it the only altcoin to suffer outflows last week.
The Impact of Spot Bitcoin ETF Anticipation
CoinShares noted that while inflows were still lower than in June when BlackRock announced its spot Bitcoin ETF application, this indicates a more cautious approach from investors this time around.
Hot Take: Increased Optimism Surrounding Spot Bitcoin ETFs Drives Crypto Investment Inflows
The anticipation of spot Bitcoin ETFs has fueled four consecutive weeks of inflows into crypto investment products. With Bitcoin leading the way, inflows reached $66 million last week, pushing assets under management to their highest level since mid-August. However, investors have taken a more cautious approach compared to June when BlackRock made its spot Bitcoin ETF announcement. Nevertheless, Bitcoin remains the dominant choice for investors, accounting for 84% of the inflows. Solana also attracted significant inflows, while Ethereum experienced outflows. Overall, the crypto market is experiencing a surge in optimism driven by the potential approval of spot Bitcoin ETFs.
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