Crypto Funds See $151 Million Inflows in First Week of 2024
Crypto funds managed by CoinShares, Bitwise, Grayscale, ProShares, and 21Shares received inflows totaling $151 million during the first week of 2024, according to a report by CoinShares. Bitcoin-based funds dominated the inflows, adding $113 million, while blockchain equities saw inflows of $24 million. Short bitcoin products experienced minor outflows of $1.1 million.
Short-Bitcoin ETPs See Outflows Despite ETF Launch Speculation
Contrary to expectations, short-bitcoin exchange-traded products (ETPs) experienced outflows of $7 million over the past nine weeks. This is surprising considering the anticipation surrounding the imminent approval of a spot Bitcoin ETF in the US. Many believed that this would lead to a “buy the rumor, sell the news” event.
Spot Bitcoin ETF Applicants File Amended S-1 Forms
Several applicants for a spot Bitcoin ETF, including BlackRock, Ark Invest/21Shares, VanEck, Fidelity, and Valkyrie, have filed amended S-1 forms. These forms provide details on proposed sponsor fees and other information, marking the final step before potential approval.
Bitcoin Price Rises Amid ETF Filings
Following the filing of amended S-1 forms for spot Bitcoin ETFs, Bitcoin briefly rose above $45,000 and currently trades at $44,860.
Majority of Bitcoin Fund Inflows from US Exchanges
Despite spot Bitcoin ETFs not yet being launched in the US, 55% of last week’s fund inflows came from US exchanges. Germany and Switzerland-based funds accounted for 21% and 17% of the flows, respectively.
Ether Investment Products Register Inflows
Ether investment products saw inflows of $29 million last week, marking a turnaround in sentiment. Over the past nine weeks, total inflows reached $215 million. There is speculation that the SEC may approve a spot ether ETF product in the US later this year.
Positive Week for Cardano, Avalanche, and Litecoin Funds
Funds based on Cardano, Avalanche, and Litecoin witnessed inflows of $3.7 million, $2 million, and $1.4 million, respectively. However, Solana products experienced outflows of $5.3 million as the value of Solana fell over 10%.
Hot Take: Crypto Fund Inflows Reflect Investor Confidence
The significant inflows into crypto funds at asset managers demonstrate growing investor confidence in the market. Despite the absence of spot Bitcoin ETFs in the US, funds continue to attract investments from various regions. The filing of amended S-1 forms for spot Bitcoin ETFs has also contributed to a rise in Bitcoin’s price. Additionally, positive sentiment is evident in the inflows seen in Ether and other altcoin-based funds. Overall, these developments indicate a positive outlook for cryptocurrencies and their investment vehicles.
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