News

Massive Inflows Propel Crypto Funds, Surpassing $500 Million, Boosted by Bitcoin ETFs

Cryptocurrency investment vehicles have witnessed a noteworthy upsurge in investor engagement, marking their fourth consecutive week of substantial capital influx. Recent data released by CoinShares indicates that these investment products have garnered approximately $598 million in investments solely over the past week.

This considerable influx of capital contributes to a year-to-date total of $5.7 billion, underscoring a persistent interest in digital assets among both institutional and retail investors.

It is pertinent to highlight that the surge in investments has predominantly been propelled by the introduction of new spot Bitcoin exchange-traded funds (ETFs) in the United States. These ETFs have swiftly gained traction, attracting substantial net flows.

James Butterfill, CoinShares’ Head of Research, underscored the significance of these inflows, noting their contribution to 55% of the record inflows observed throughout 2021.

Regional Patterns and Asset Performance

The data also unveils intriguing regional patterns in cryptocurrency investments. Funds based in the US led the way with the most significant inflows, totaling approximately $610 million. However, despite this favorable momentum, Grayscale, an established issuer, experienced outflows amounting to $436 million.

Meanwhile, Brazil and Switzerland recorded modest inflows of $8.2 million and $2.1 million, respectively. Conversely, Canada witnessed substantial outflows, nearing $20 million from digital asset investment products.

Source: Coinshares

In terms of asset preference, Bitcoin-based funds dominated the inflows, amassing $570 million in investments. This surge primarily emanates from spot Bitcoin ETFs in the US, which have accumulated over $5.5 billion in net flows since their inception earlier this year.

Ethereum products also witnessed notable inflows, totaling $17 million. Additionally, funds based on Chainlink and XRP saw significant inflows of $1.8 million and $1.1 million, respectively.

Market Outlook and Investor Sentiment

Bitcoin’s price surged to $57,000 stealing the show, while other cryptocurrencies are following.

However, certain assets encountered challenges. Solana investment products, for instance, witnessed outflows for the second consecutive week, totaling $3 million.

It is worth to mention that in similar situations when bitcoins makes this 10% legs up it only a matter of time when bitcoin starts to cool of and Altcoins start their big moves.

 

Etan Hunt

Bitcoin Maximalist and Toxic to our banking and monetary system. Separation of money and state is necessary just like the separation of religion and state in the past.

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