Steady Growth Continues in Crypto Asset Investment Products
Last week, a total of $3.2 billion flowed into crypto asset investment products.
According to CoinShares data, this increase indicates that inflows have continued for ten consecutive weeks, bringing total inflows since the beginning of the year to a remarkable $44.5 billion. This figure is more than four times that of any other year. The trading volume of exchange-traded products (ETPs) averaged $21 billion weekly, which accounts for 30% of the Bitcoin volume traded on reliable exchanges. Bitcoin volumes on regulated exchanges (covering all types of investments) remain highly liquid, averaging $8.3 billion per day this year, representing double the volume of the FTSE 100.
While overall sentiment in regional inflows is positive, fund inflows were recorded across all regions except Sweden last week. The United States, Switzerland, Germany, and Brazil led the way with inflows of $3.13 billion, $35.6 million, $32.9 million, and $24.7 million, respectively. The only outflow came from the Swedish market, which saw $19 million withdrawn.
Bitcoin and Ethereum fund inflows at notable levels
Bitcoin investment products stood out with $2 billion in inflows, bringing total inflows since the US elections to $11.5 billion. Following recent price increases, BTC Short funds, which focus on Bitcoin's downward movement, recorded inflows of $14.6 million. However, total assets under management for these specific funds remain at a low level, recorded at $130 million.
Ethereum also showed a positive trend for the seventh consecutive week, seeing inflows of over $1 billion. During this seven-week period, total inflows into Ethereum investment products reached $3.7 billion, indicating a significant improvement in sentiment.
Activity in altcoin funds
XRP-based investment products recorded $145.8 million in inflows amid increasing hopes for an ETF listed in the US. Polkadot and Litecoin also garnered attention with inflows of $3.7 million and $2.2 million, respectively.
Overall, the movements in the cryptocurrency market this week suggest an increasing interest from investors in altcoins. This trend indicates that cryptocurrencies are gaining more acceptance in the investment world.