The Launch of Bitcoin ETF Does Not Break Capital Inflows Record
The CoinShares report revealed that despite the launch of the Bitcoin ETF, capital inflows into digital assets fell short of breaking the October 2021 record. The influx of investment products amounted to $1.18 billion, whereas the previous record stood at $1.5 billion.
Trading Volumes Reach All-Time High
While capital inflows didn’t break records, trading volumes certainly did. Last week, trading volume reached a staggering $17.5 billion, the highest ever recorded. This is a significant increase compared to the average weekly trading volume of $2 billion in 2022. The trading volumes accounted for nearly 90% of the daily trading volumes on trusted exchanges on January 12.
Geographical Distribution of Funds
Experts noted that there was an inflow of funds worth $1.24 billion in the United States last week. However, countries like Germany, Canada, and Sweden experienced an outflow of funds. Analysts believe this shift in distribution occurred as traders sought to switch from Europe to the United States.
Inflows by Cryptocurrencies
Last week, Bitcoin (BTC) witnessed inflows of $1.16 billion, Ethereum (ETH) saw inflows of $26 million, and XRP had inflows of $2.2 million. Notably, Solana (SOL) only received $0.5 million in inflows during the same period.
“Blockchain equities also saw large inflows totaling $98m, bringing total inflows over the last seven weeks to $608m.”
CoinShares report
Inflows Since Grayscale-SEC Trial
Between January 1 and January 5, the inflow of funds into crypto funds amounted to $151 million. Analysts also highlighted that the total inflow of funds since the trial between Grayscale and the SEC has reached $2.3 billion.
Hot Take: Capital Inflows Fail to Break Records Despite Bitcoin ETF Launch
The recent launch of the Bitcoin ETF didn’t result in breaking capital inflow records for digital assets. However, trading volumes soared to all-time highs, indicating increased activity in the market. Geographically, there was a significant inflow of funds in the United States, while countries like Germany, Canada, and Sweden experienced outflows. Despite these fluctuations, various cryptocurrencies saw substantial inflows, with Solana being an exception. The inflow of funds into crypto funds has been steadily increasing, reaching $2.3 billion since the Grayscale-SEC trial. Overall, while capital inflows may not have broken records, the crypto market remains dynamic and continues to attract significant investment.
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