Digital-Asset Investment Products See Continued Inflows
CoinShares, Bitwise, Grayscale, 21Shares, and ProShares have experienced net inflows for six consecutive weeks, adding $261 million in the past six weeks alone. This surpasses the total inflows of $736 million seen in all of 2022. Bitcoin investment products accounted for the majority of these inflows, totaling $229 million and bringing year-to-date bitcoin fund inflows to $842 million. The recent surge is likely due to the increasing likelihood of a spot-based bitcoin exchange-traded fund in the US and weaker macroeconomic data. However, short-bitcoin products also saw some inflows, suggesting skepticism about the sustainability of the rally.
Ether Crypto Funds and US Investor Comeback
Last week, Ether crypto funds saw the largest inflows since August 2022, totaling $17.5 million. This marks a significant turnaround from the outflows of $107 million they faced earlier this year. Additionally, Solana and Chainlink products received inflows of $11 million and $2 million respectively. Polygon and Cardano-based funds had smaller inflows of $0.8 million and $0.5 million. In terms of regional participation, US investors contributed $157 million in inflows over the past week, while Germany, Switzerland, and Canada also saw steady participation with inflows of $63 million, $36 million, and $9 million respectively.
Hot Take: Increased Confidence in Cryptocurrency Investments
The continued net inflows into digital-asset investment products indicate growing confidence among investors in cryptocurrencies. With Bitcoin leading the way and Ether making a comeback, it is clear that both established and emerging cryptocurrencies are attracting interest. The potential approval of a bitcoin exchange-traded fund in the US is seen as a positive development, while concerns about macroeconomic conditions are also driving investment. However, the inflows into short-bitcoin products suggest that some investors remain cautious about the sustainability of the recent rally. Overall, the inflow streak highlights the resilience and potential of the cryptocurrency market.
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