The total value of assets under management for cryptocurrency-related investment products increased 107% to $46.2 billion after the 10th consecutive week of inflows recorded by these products.
According to CoinShares’ weekly report, cryptocurrency products recorded strong inflows of $176 million over the past week, bringing total inflows over 10 weeks to an impressive $1.76 billion. The asset manager noted that these sustained inflows are the most significant since October 2021, coinciding with the launch of futures-based ETFs in the US.
Notably, these inflows amplified Exchange Traded Products (ETP) volume to approximately $2.6 billion, accounting for 12% of total Bitcoin (BTC) volume.
These inflows can be attributed to market optimism surrounding the possible approval of spot Bitcoin ETFs in the United States. Over the past few months, several established financial institutions, including BlackRock, have filed with the Securities and Exchange Commission (SEC) for spot Bitcoin ETFs. ).
This unfolding scenario and the SEC’s proactive interaction with applicants have raised market expectations regarding the likelihood of approval for numerous applications.
Bitcoin dominates inflows
Bitcoin remains the main beneficiary of market interest, recording significant inflows of $133 million last week. Short-Bitcoin products reversed a three-week outflow trend, recording inflows of $3.6 million.
The inflows into short-term BTC products can be linked to the top cryptocurrency’s recent bullish performance, breaking the $41,000 barrier this morning (December 4) amid continued strong market performance.
Likewise, Ethereum (ETH) observed notable inflows of $31 million last week, marking its fifth consecutive week at $134 million. As a result, Ethereum reversed long-standing negative sentiment and achieved net inflows of $10 million this year.
In contrast to the positive trend, Litecoin (LTC) was the only asset to experience outflows last week, recording a negative movement of around $200,000 amid an overall surge in digital asset investments.
Across the region, last week’s inflows were primarily fueled by investors from Canada, Germany and the United States, who contributed $79 million, $57 million and $54 million respectively.
Conversely, Hong Kong investors caused an outflow of $15 million from the market. Although the Asian market is relatively small, it is the only region with annual net outflows.