Crypto investment products see four weeks of inflows as market awaits potential Bitcoin ETF approval
Crypto investment products have experienced four consecutive weeks of inflows, with investors eagerly anticipating the approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States. According to CoinShares’ fund flows report, $179 million was added to digital asset investment products in the week ending October 20, bringing the total assets under management in the space to $33 billion. Of the inflows from the past week, $55.3 million, or 84%, went to Bitcoin investment products, bringing the year-to-date Bitcoin product inflows to $315 million.
CoinShares Head of Research James Butterfill acknowledged that the recent inflows have not reached the levels seen earlier this year when BlackRock first filed for a spot Bitcoin ETF. Butterfill stated, “While the most recent inflows are likely linked to excitement over a spot Bitcoin ETF launch in the U.S., they are relatively low in comparison to the initial inflows following BlackRock’s announcement in June.” He added that the lower inflows indicate that investors are adopting a more cautious approach this time.
In terms of altcoins, Solana (SOL) products received the second-largest share of inflows last week, totaling $15.5 million. Ether (ETH) products, on the other hand, saw outflows of $7.4 million, making it the only altcoin to experience outflows.
Interest in a spot Bitcoin ETF surged on October 23 following positive signs that BlackRock’s ETF was closer to approval and a U.S. Appellate Court issued a mandate for the Securities and Exchange Commission to review Grayscale’s spot Bitcoin ETF filing. These developments sparked a Bitcoin rally, with the cryptocurrency gaining 14% in the past 24 hours and briefly reaching $34,000 for the first time since May 2022. Additionally, over $193 million in Bitcoin short liquidations occurred in the past 24 hours.
Sources:
– CoinShares’ fund flows report: https://cointelegraph.com/news/crypto-product-inflows-amid-excitement-bitcoin-etf(https://blog.coinshares.com/volume-154-digital-asset-fund-flows-weekly-report-8047e8013369)
– CoinShares’ tweet: https://cointelegraph.com/news/crypto-product-inflows-amid-excitement-bitcoin-etf(https://twitter.com/CoinSharesCo/status/1716448590028026319?ref_src=twsrc%5Etfw)
– CoinGlass data: https://cointelegraph.com/news/crypto-product-inflows-amid-excitement-bitcoin-etf(https://www.coinglass.com/LiquidationData)
– Related article: https://cointelegraph.com/news/crypto-product-inflows-amid-excitement-bitcoin-etf(https://cointelegraph.com/news/bitcoin-etf-massive-demand-institutions)
– BlackRock’s ETF news: https://cointelegraph.com/news/crypto-product-inflows-amid-excitement-bitcoin-etf(https://cointelegraph.com/news/blackrock-spot-bitcoin-etf-nasdaq-clearing-firm)
– Grayscale’s spot Bitcoin ETF filing news: https://cointelegraph.com/news/crypto-product-inflows-amid-excitement-bitcoin-etf(https://cointelegraph.com/news/court-mandate-grayscale-sec-spot-bitcoin-etf)
– Web3 Gamer magazine: https://cointelegraph.com/news/crypto-product-inflows-amid-excitement-bitcoin-etf(https://cointelegraph.com/magazine/minecraft-bans-bitcoin-play-earn-iphone-15-crypto-gaming-formulae-preview-web3-gamer/)
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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