Crypto Investment Products Witness Record Trading Volume
Last week, crypto investment products at asset managers like Bitwise, Grayscale, and 21Shares experienced a record trading volume of $17.5 billion as spot bitcoin ETFs became available for trading in the U.S., according to CoinShares’ latest report. These trading volumes accounted for nearly 90% of daily trading volumes on trusted exchanges, which is unusually high. The inflows into these investment products reached $1.18 billion, but fell short of the $1.5 billion record set when futures-based ETFs were launched in October 2021.
Bitcoin Dominates Among Funds, US Regionally
Bitcoin funds dominated the inflows, representing 98% of the total, while short bitcoin investment products had minor inflows. Ethereum-based products received inflows worth $25.7 million, XRP funds received $2.2 million, and Solana investment products brought in just $0.5 million. In terms of regions, U.S.-based funds generated $1.24 billion of inflows, while Europe saw minor outflows. CoinShares suspects that the outflows from Europe and Canada were basis traders switching to the U.S.
Blockchain Equities Witness Inflows
Blockchain equities also saw $98 million worth of inflows last week, continuing a seven-week streak that now totals $608 million.
CoinShares Acquires Valkyrie Funds
CoinShares announced that it exercised its option to acquire Valkyrie Funds following the approval of spot bitcoin ETFs. CoinShares aims to expand its European success in the U.S. by offering regulated digital asset products to American investors through this acquisition.
Valkyrie Bitcoin Fund’s Trading Volume Falls Behind
Although Valkyrie’s spot bitcoin ETF was approved, it had the third lowest trading volume among the 11 spot bitcoin ETFs that debuted. It saw under $9 million of trading volume, compared to $1 billion for BlackRock’s ETF and $2.27 billion for Grayscale’s converted fund.
Hot Take: Crypto Investment Products Reach New Heights with Spot Bitcoin ETFs
Last week marked a significant milestone for crypto investment products as spot bitcoin ETFs finally became available in the U.S. This resulted in record-breaking trading volumes and substantial inflows into these products. Bitcoin funds continued to dominate, but other assets like Ethereum and XRP also received notable inflows. The U.S. emerged as the dominant region for crypto investments, while Europe experienced minor outflows. Additionally, CoinShares made a strategic move by acquiring Valkyrie Funds to expand its presence in the American market. Overall, the introduction of spot bitcoin ETFs has brought new opportunities and growth to the crypto investment landscape.
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