Journalist
Posted:
- Over the past two months there has been a steady flow of money into crypto-backed investment products.
- Ethereum’s one-month inflows have corrected almost all the outflows it has recorded so far this year.
Digital asset investment products recorded inflows of $346 million last week. This represented the largest single week of fund flows in the nine consecutive weeks of inflows recorded to date, digital asset investment firm CoinShares found in a new report.
According to the report, last week’s surge in inflows was due to anticipation of the launch of a spot-based ETF in the US.
CoinShares found that last week’s $346 million represented the largest weekly inflow since the bull market during the 2021 market cycle.
Source: CoinShares
During the week under review, many crypto assets recorded price increases. Bitcoin [BTC] for example, saw the value rise by almost 5% between November 18 and 24.
Due to the combined impact of rising asset prices and inflows into crypto funds, total assets under management (AuM) peaked at $45.3 billion last week. The investment firm noted that this was the highest level in the past 18 months.
Regionally, most of the flows into crypto funds last week came from Canada and Germany, with inflows of $199 million and $102 million respectively. As for the US, there was “low participation,” which CoinShares said could be due to investors waiting for the ETF to launch.
Bitcoin inflows this year exceeded $1.5 billion
During the reporting week, investment products backed by the leading crypto BTC recorded an inflow of $312 million. This represented 90% of all inflows that week.
These significant inflows into BTC-backed products pushed the coin’s year-to-date (YTD) above $1.5 billion, and month-to-date (MTD) inflow tethering closer to $1 billion.
Within the week under review, BTC’s AUM reached $32.3 billion, representing a 75% share of the entire market’s total AUM of $45 billion.
As for short Bitcoin products, they recorded their third week of consecutive outflows. This resulted in a significant decrease in assets under management. The report further stated:
“While short sellers continue to capitulate, with outflows totaling $0.9 million in the third week, with assets under management down 61% since the April 2023 peak.”
Ethereum leads, while other altcoins follow
Last week’s $34 million inflow marked a “decisive turnaround in sentiment” and marks the fourth straight week of inflows for Ethereum [ETH].
As for other altcoins:
“Solana, Polkadot and Chainlink saw inflows of $3.5 million, $0.8 million and $0.6 million respectively.”