Bitcoin (BTC) exchange-traded products (ETPs) saw inflows of $312 million during the week of November 24, bringing annual inflows to about $1.5 billion, according to CoinShares. Weekly inflows across all cryptocurrencies totaled $346 million, continuing a nine-week positive net inflow trend.
This week it set a new inflow record at US$346 million, the highest total inflows in the past nine weeks.
– #Bitcoin –
$BTC: US$312m inflow (annual inflow of US$1.5 billion)
Bitcoin Sell: US$9 Million OutflowRatio of ETP trading volume to total spot Bitcoin trading volume… pic.twitter.com/gMUPzTy0q4
— CoinShares (@CoinSharesCo) November 27, 2023
Cryptocurrency ETPs experience inflows when the stock is trading above the price of the underlying asset, while they experience outflows when the stock is trading below the value of the underlying asset. For this reason, inflows are often considered a bullish indicator for the overall cryptocurrency market, while outflows are often considered bearish.
According to the report, prior to September 25, cryptocurrency ETPs had been leaked for several weeks. However, the sector began seeing sustained weekly inflows from the week of September 25-29. Inflows also increased over time. The week ended November 24 had the highest inflows of the entire nine-week period.
CoinShares said Canadian and German ETPs accounted for the largest share of inflows this week at 87%. Inflows from the United States were contained to $30 million.
Currently, assets under management across cryptocurrency funds are $45.4 billion, the highest in 18 months.
In a previous report, CoinShares speculated that these recent inflows could be influenced by growing optimism that a U.S. spot Bitcoin ETF would be approved. On November 22, BlackRock met with the U.S. Securities and Exchange Commission to make progress toward this goal. Grayscale also met with the SEC for similar reasons.