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.
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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.
