Total Crypto Inflows Reach $1.76 Billion in 10 Weeks
Over the past 10 weeks, there has been a consistent increase in inflows into crypto investment products. According to CoinShares’ latest report, these inflows amounted to $176 million last week, bringing the total to $1.76 billion. This surge in investments is not coincidental, as most cryptocurrencies experienced positive price action during the same period.
Smart Money Investors Bet Big on Crypto
After a lackluster year and periods of net outflows, recent data reveals that smart money investors are once again placing significant bets on crypto. The rise in digital asset fund investments can be attributed to the bull run that started in mid-October. As a result, inflows have been consistently increasing each week, surpassing levels not seen since 2021’s bull market.
Inflows Dominated by Bitcoin
Last week, digital asset funds received an inflow of $176 million, with the majority going into Bitcoin ($133 million). Bitcoin remains the preferred choice for institutional investors, especially with the anticipation of spot Bitcoin ETFs gaining regulatory approval in the US. The cryptocurrency has shown strength since October, breaking various price levels and resistances.
Altcoins Also Benefit from Investor Sentiment
Ethereum witnessed an inflow of $31 million last week, bringing its five-week total to $134 million. Multi-asset investment products that provide exposure to a range of crypto assets attracted $2.3 million in new investments. Solana and XRP also saw inflows of $4.3 million and $0.5 million respectively. However, Litecoin experienced outflows of $0.2 million.
Global Trends in Inflows
Most of the inflows came from Canada, Germany, and the US, with $79 million, $57 million, and $54 million respectively. Australia and Sweden witnessed outflows of $0.5 million and $0.2 million. Despite these regional variations, the overall trend indicates that institutions remain optimistic about the long-term prospects of crypto.
Record Inflows Reflect Bullish Sentiment
The current influx of funds into crypto investment products is reminiscent of previous bullish periods in the industry. CoinShares notes that this is the largest run of inflows since the launch of futures-based ETFs in October 2021. Assets under management have also increased by 107% this year to reach $46.2 billion, although still below the peak of $86.6 billion in 2021.
Hot Take: Institutional Interest in Crypto Continues
The latest data confirms that institutional interest in the crypto market shows no signs of waning. With consistent inflows into digital asset funds and rising assets under management, it is evident that institutions are confident about the future of cryptocurrencies. As we head into the new year, it is highly likely that we will witness even greater levels of institutional investment in the crypto space.
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