Record-Breaking Inflows in Crypto Investment Products Echo 2021 Bull Run

1:08 pm
December 5, 2023
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Recent data from CoinShares reveals that crypto investment products have witnessed 10 consecutive weeks of inflows, amounting to a total of $1.76 billion. The surge in inflows last week, totaling $176 million, aligns with the resurgence of most cryptocurrencies in terms of price action.

Total Crypto Inflows Reach $1.76 Billion in 10 Weeks

After a period of stagnation and some weeks of net outflows, the latest data demonstrates a renewed interest from institutional investors in the crypto market. The surge in investments in digital asset funds has been fueled by the ongoing bull market, which began in mid-October. This has led to a continuous increase in inflows, reaching levels not seen since the 2021 crypto market bull run.

In November, digital asset investment funds experienced an inflow of $176 million, slightly lower than the $346 million recorded in the previous week. Notably, the majority of the inflows was directed towards Bitcoin, with the cryptocurrency receiving $133 million in inflows.

Bitcoin continues to attract significant institutional interest, especially in light of the anticipation surrounding spot Bitcoin ETFs in the US awaiting regulatory approval. The cryptocurrency has strengthened since October, surpassing various price levels and resistances, with the most recent milestone being the $42,000 price level.

The positive sentiment has also spilled over into the altcoin market, with Ethereum witnessing inflows of $31 million last week, bringing its total inflow for five weeks to $134 million. Additionally, multi-asset investment products offering exposure to a range of crypto assets received $2.3 million in new investments.

In terms of market distribution, the majority of the inflows originated from Canada, Germany, and the US, with inflows of $79 million, $57 million, and $54 million, respectively. Conversely, Australia and Sweden experienced outflows of $0.5 million and $0.2 million, respectively. Nonetheless, the overall trend indicates that institutions maintain a bullish outlook on crypto in the long run.

According to CoinShares, the current run of inflows marks the largest since October 2021, when the US witnessed the launch of futures-based ETFs. Assets under management have also surged by 107% this year, currently standing at $46.2 billion. Although this figure is lower than the $86.6 billion recorded in 2021, the latest data suggests that institutional interest in the crypto market remains robust and is likely to persist in the foreseeable future.

Featured image from CNBC, chart from Tradingview.com

Total market cap at $1.5 trillion | Source: Crypto Total Market Cap on Tradingview.com

## Key points to note:
– Crypto investment products have seen 10 consecutive weeks of inflows, totaling $1.76 billion.
– Inflows surged last week, totaling $176 million, in line with the recovery of most cryptocurrencies.
– Bitcoin remains a primary attraction for institutional investors, particularly with the anticipation of spot Bitcoin ETFs in the US.
– Ethereum witnessed inflows of $31 million last week, contributing to a 5-week total of $134 million.
– The majority of inflows originated from Canada, Germany, and the US.

## FAQs
### What is the significance of the record-breaking inflows in crypto investment products?
The surge in inflows reflects a renewed interest from institutional investors in the crypto market. It indicates that institutional interest in the crypto market remains robust and is likely to persist in the foreseeable future.
### Which cryptocurrencies saw the highest inflows?
Bitcoin received the highest inflows, totaling $133 million, followed by Ethereum with inflows of $31 million.
### Which countries saw the highest inflows in crypto investment products?
The majority of the inflows originated from Canada, Germany, and the US, with inflows of $79 million, $57 million, and $54 million, respectively.
### What impact do these inflows have on the overall crypto market?
The influx of institutional investments is likely to contribute to the overall growth and stability of the crypto market, reflecting a positive sentiment from institutional investors.


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