Crypto investment products have experienced another week of inflows, bringing the run to 10 consecutive weeks. According to the latest report from CoinShares report among digital asset mutual funds, inflows into crypto products totaled $176 million last week, bringing total inflows in 10 weeks to $1.76 billion. The timing is no coincidence, as with most cryptocurrencies turned green again last week in terms of price action.
Total cryptocurrency inflows reached $1.76 billion in 10 weeks
After lackluster action for most of the year and several weeks of net outflows, the latest data shows smart money investors are once again betting big on crypto. Investments in digital asset funds have been on the rise over the past two months, fueled by the crypto market bull run that started in mid-October. As a result, inflows have exploded each week, exceeding levels not seen since the 2021 crypto market bull run.
Digital asset mutual funds ended November with inflows of $176 million, although lower than the $346 million recorded the previous week. Most of the money went into Bitcoin last week, with the cryptocurrency seeing an inflow of $133 million.
Bitcoin remains the most popular digital assets for institutions, and interest has really been sparked by their applications spot Bitcoin ETFs in the US waiting for approval from regulators. As a result, the crypto has strengthened since October, breaking through several price levels and resistances last is $42,000 price level.
Sentiment has also flowed into the altcoin market. Ethereum saw inflows from $31 million last week, bringing inflows over the five-week period to a total of $134 million. Multi-asset investment products that provide exposure to a basket of crypto assets saw $2.3 million in new investments.
Total market cap at $1.5 trillion | Source: Crypto Total Market Cap on Tradingview.com
Solana And XRP saw inflows of $4.3 million and $0.5 million respectively. On the other hand, Litecoin saw an outflow of $0.2 million, and Short Bitcoin products saw an inflow of $3.6 million after three consecutive weeks of outflows.
Most of the inflows came from Canada, Germany and the US, with inflows of $79 million, $57 million and $54 million respectively. Australia and Sweden also saw outflows of $0.5 million and $0.2 million respectively. However, the overall trend shows that institutions are still bullish on crypto in the long term.
It is exciting to see such numbers again, as they are reminiscent of the past bullish sentiment in the crypto industry. According to CoinShares, these inflows are now the largest since October 2021, when the futures-based ETF launched in the US.
Assets under management are also up 107% this year and now stand at $46.2 billion, but still below 2021’s $86.6 billion. However, this record is about to be overtaken in the coming year as the latest data provide further evidence that institutional interest in the crypto market will continue for a while.
Featured image from CNBC, chart from Tradingview.com