Crypto Investment Products Attracting Inflows
Crypto investment products attracted $151 million in inflows during the first week of 2024. The lion’s share, $113 million, went to Bitcoin-based funds. These inflows went to asset managers like CoinShares, Bitwise, Grayscale, ProShares, and 21Shares.
US Attracted Most Crypto Inflows
From a regional standpoint, 55% of the total funds came from US-based exchanges. Besides Bitcoin, Ethereum investment products also added inflows worth $29 million, bring its total inflows to $215 million over nine weeks. Cardano, Avalanche, and Litecoin are among the other altcoins that also recorded inflows.
Market Shifts Focus to Altcoins
As the market shifts focus from SOL to ETH, Solana products recorded $5.3 million in outflows during week one of 2024, when SOL’s market value slumped 10%. SOL had pumped so hard in December that it threatened to displace BNB as the fourth-largest crypto by market cap.
Hot Take
The increasing inflow of funds into cryptocurrency investment products, particularly Bitcoin-based ones, demonstrates a growing interest in the crypto market. This surge in investments not only includes large market cap altcoins but also indicates a shift in market sentiment from one cryptocurrency to another.
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