Record Trading Volumes with Spot Bitcoin ETFs Increase
Last week, trading volume for cryptocurrency investment products reached a record $17.5 billion, accentuated by the surge in sentiment due to the debut of spot Bitcoin ETF products, as stated by CoinShares.
Bitcoin Funds Dominate Inflows
With surged trading volumes, inflows for funds like Bitwise, Grayscale, and 21Shares made it to $1.18 billion, close to but not surpassing the previous record of $1.5 billion set when futures-based Bitcoin ETFs were launched back in October 2021, as per James Butterfill, head of research at CoinShares.
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Bitcoin Leads, Altcoins Follow
Bitcoin funds took the lion’s share of the inflows, reaching $1.16 billion, representing 98% of the total. Meanwhile, altcoins saw various amounts of inflows, with Ethereum-based products receiving $25.7 million, XRP-related funds witnessing $2.2 million of inflows, and Solana-based investment products getting $0.5 million in inflows.
Major Inflows from the US
The US led inflows at $1.24 billion, followed by Switzerland at $21 million. Outflows from Europe & Canada, particularly $44 million from Canada, $27 million from Germany, and $16 million from Sweden, were believed to be traders shifting from Europe to the US, according to Butterfill’s suspicions.
Hot Take
You need to be cautious when investing in crypto. It’s a high-risk venture where you should be prepared to lose everything you’ve invested.
