Digital assets manager CoinShares reports that institutional investors are investing heavily in crypto exchange-traded products (ETPs), with a total of $708 million pouring in just weeks after the approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). According to CoinShares’ latest Digital Asset Fund Flows report, there were significant inflows into crypto investment products last week, while outflows from Grayscale slowed down slightly.
The report states that digital asset investment products received inflows of $708 million last week, bringing the year-to-date inflows to $1.6 billion and the total global assets under management to $53 billion. However, trading volumes in ETPs decreased to $8.2 billion compared to the previous week’s total of $10.6 billion, although they still remain well above the average of $1.5 billion per week in 2023.
Since their approval by the SEC last month, recently issued US-based ETFs have attracted inflows of $1.9 billion over the past four weeks. However, there have also been outflows of $6 billion from incumbent issuers, although there has been a significant reduction in the momentum of these outflows in recent weeks.
In terms of specific cryptocurrencies, Bitcoin products received the majority of the inflows at $703 million, while Ethereum products experienced losses of $6.4 million. Avalanche (AVAX) saw outflows of $1.3 million, while Solana (SOL) products attracted inflows worth $13 million.
Institutional investors continue to show strong interest and confidence in cryptocurrencies, particularly Bitcoin, as they pour significant amounts of money into crypto ETPs. This trend is likely to continue as more regulatory approvals are granted and investor sentiment remains positive towards digital assets.
Hot Take: Institutional Money Floods into Crypto ETPs
Institutional investors are increasingly embracing cryptocurrencies as they pour millions of dollars into crypto exchange-traded products (ETPs). CoinShares’ latest report reveals that these investors have invested a whopping $708 million in just one week, following the recent approval of spot Bitcoin exchange-traded funds (ETFs) by the SEC. This surge in institutional investment demonstrates growing confidence and interest in cryptocurrencies, particularly Bitcoin. While Ethereum products experienced some losses, other cryptocurrencies like Solana saw significant inflows. As regulatory approvals continue and investor sentiment remains positive, we can expect this institutional floodgate to open even wider, bringing more institutional money into the crypto market.
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