Crypto investment products hit 9-week high of inflows with $346M

6:38 am
November 28, 2023

**Summary:**
Cryptocurrency investment products have experienced a significant surge in inflows, reaching a 9-week high of $346 million, according to a report released by digital assets management firm CoinShares. The report indicates a notable increase in investment confidence, with $312 million flowing into Bitcoin-related exchange-traded products and $34 million into Ethereum. This spike in inflows has propelled the total assets under management in cryptocurrency funds to $45.4 billion, marking the highest level since May last year.

**Crypto Investment Products Record 9-Week High in Inflows, Reaching $346 Million**
Recently, cryptocurrency investment products have witnessed a substantial increase in inflows, hitting a 9-week high of $346 million. This surge is detailed in a weekly report by CoinShares, a digital assets management firm. James Butterfill, the firm’s head of research, emphasized the significance of last week’s inflows in crypto exchange-traded products, labeling it as the “highest total observed in the past 9 weeks.”

The analysis points out that the influx of funds into crypto products is at its peak since the last bull market, indicating a positive trend in net inflows. The sentiment surrounding the potential approval of a spot-based ETF in the United States is likely to sustain this trend. According to the report, the total inflows for the week ending November 24 amounted to $346 million, reflecting a remarkable resurgence in investment confidence.

**Bitcoin ETPs and Altcoins Inflows**
The data revealed that Bitcoin products attracted the largest portion of the inflows, with a staggering $312 million recorded in weekly inflows. Moreover, the report highlighted a year-to-date inflows total of $1.5 billion for the flagship cryptocurrency. Conversely, short Bitcoin products experienced outflows of $0.9 million.

Aside from Bitcoin, other altcoins also experienced a resurgence in inflows. Ethereum saw an influx of $34 million, while Solana, Polkadot, and Chainlink witnessed $3.5 million, $0.8 million, and $0.6 million, respectively. CoinShares noted that Ethereum has been on a 4-week run, accumulating a total of $103 million, indicating a significant shift in sentiment.

**Total Assets Under Management and Yearly Inflows**
The substantial influx of funds into crypto investment products has propelled the total assets under management in crypto funds to $45.4 billion, marking the highest level since May last year. Earlier this month, total year-to-date cryptocurrency ETP inflows surpassed the $1 billion mark, signifying a remarkable uptrend in investment activities within the cryptocurrency market.

**FAQs**

1. **What are ETP inflows?**
ETP inflows refer to the amount of money flowing into exchange-traded products within the cryptocurrency market. This signifies an increase in investor interest and investment activities within the crypto space.

2. **What does the surge in inflows indicate?**
The surge in inflows indicates a resurgence in investment confidence and interest in cryptocurrencies, specifically in leading assets such as Bitcoin and Ethereum. It also suggests a positive trend in net inflows and a potentially favorable market sentiment.

3. **What impact have the inflows had on the total assets under management in crypto funds?**
The substantial inflows have elevated the total assets under management in crypto funds to $45.4 billion, marking the highest level since May last year.

4. **How significant is the milestone of total year-to-date cryptocurrency ETP inflows surpassing the $1 billion mark?**
The milestone signifies a notable uptrend in investment activities within the cryptocurrency market, reflecting a growing investor interest in crypto investment products.

5. **What factors have contributed to the resurgence in inflows for Ethereum?**
Factors such as a decisive turn-around in sentiment, potentially influenced by recent events including the filing of a spot Ethereum ETF by BlackRock, have contributed to the resurgence in inflows for Ethereum.


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