Digital Asset Investment Products See Surge in Inflows
Institutional investors are showing strong interest in digital asset investment products, according to a report by CoinShares. The report reveals that institutional crypto products experienced their largest surge of inflows in two years. For nine consecutive weeks, these products have seen significant investments from institutions.
The surge in inflows is attributed to the anticipation of the launch of a spot-based exchange-traded fund (ETF) for cryptocurrencies, starting with Bitcoin (BTC). Last week, the inflows reached a total of $346 million, with BTC receiving the majority share at $312 million. CoinShares notes that a significant portion of BTC trading volumes came from exchange-traded products (ETPs), indicating increased use of ETPs to gain exposure to the asset class.
Altcoins Also Attract Inflows
Altcoins also experienced inflows last week. Ethereum (ETH) received $34 million in investments, while Solana (SOL) attracted $3.5 million. Cardano (ADA), XRP, Polkadot (DOT), and Chainlink (LINK) also saw inflows ranging from $0.2 million to $0.8 million.
Hot Take: Institutions Bullish on Crypto ETF
Institutional investors’ increasing investments in digital asset products and the anticipation of a spot-based ETF launch demonstrate their growing confidence in cryptocurrencies. This surge in capital inflows is the largest since the late-2021 bull market. With institutions expecting the launch of an ETF, it signals a positive sentiment towards cryptocurrencies and further mainstream adoption. As more institutional investors enter the market through regulated investment vehicles like ETFs, it could potentially drive increased liquidity and stability to the crypto space.
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