Crypto funds experience largest weekly inflows in over a year
By Sarah Franks30 October, 20232 mins read89 Views
courtesy of cointelegraph.com
Key Takeaways:
- Crypto exchange-traded products (ETPs) saw their largest weekly inflows in over a year
- Inflows for the week ending October 27 were $326 million, compared to $66 million the previous week
- The rise in inflows may be due to optimism about the approval of a spot-based Bitcoin ETF in the US
- Bitcoin ETPs received the majority of the inflows, while Ether funds experienced outflows
courtesy of cointelegraph.com
Crypto exchange-traded products (ETPs) experienced a significant surge in inflows, marking their largest weekly increase in over a year, according to a report from asset management platform CoinShares. Inflows for the week ending October 27 reached $326 million, dwarfing the $66 million recorded the previous week.
ETPs are investment funds that track the price of a specific asset, and in the case of crypto ETPs, they typically follow the price movements of major cryptocurrencies like Bitcoin and Ether. Some investors prefer to gain exposure to crypto prices through these funds rather than holding the assets directly, as the shares of these funds can be held in a traditional brokerage account.
The rise in inflows can be attributed to growing optimism among investors about the potential approval of a spot-based Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). It is believed that approval of such an ETF could lead to increased inflows to US-based funds.
CoinShares' report revealed that the weekly inflows for the week ending October 27 were the highest since July 2022, indicating a positive trend for the market. This also marked the fifth consecutive week of ETP inflows.
Despite the significant increase in inflows, CoinShares noted that this week's figure only ranked as the 21st largest increase ever recorded. The majority of the inflows went into Bitcoin ETPs, accounting for 90% of the total. Solana also experienced a boost in inflows, with $24 million invested. However, Ether funds saw outflows of $6 million.
It is worth noting that while there have been numerous applications for a spot Bitcoin ETP in the US, the SEC has yet to approve one. Van Eck recently amended its application to address the agency's concerns, and Hashdex had a meeting with the SEC in an effort to secure approval for their spot Bitcoin ETP.
Overall, the surge in weekly inflows for crypto funds indicates a positive sentiment among investors, with hopes of a Bitcoin ETF approval in the US driving the market.
