Crypto Sees Largest Fund Inflows Since 2021 Amid Bitcoin ETF Expectations

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Digital asset investment products recorded their largest weekly inflows since late 2021, reaching $346 million. James Butterfill, Head of Research at CoinShares, attributes this surge to the upcoming Bitcoin spot Exchange-Traded Fund (ETF) in the US.

ETF Anticipation Fuelling the Largest Surge in Inflows Since Late 2021https://t.co/kadC8aRml5

— James Butterfill (@jbutterfill) November 27, 2023

Bitcoin, leading the charge, has seen inflows of $312 million over the past week, raising its year-to-date total to just over $1.5 billion. This trend coincides with a reduction in short-selling activities, indicating a shift in market sentiment.

Ethereum, the second-largest crypto by market capitalization, has also seen a resurgence of interest. With inflows of $34 million last week, it has nearly offset its outflows for the year, signaling a decisive turnaround in investor confidence. Over the past four weeks, Ethereum has amassed inflows of $103 million.

The current nine-week streak of inflows reflects broader market optimism, partly fueled by the anticipated launch of a Bitcoin ETF in the US. Total assets under management (AUM) for digital asset products have soared to $45.3 billion, the highest in over one and a half years, driven by both price increases and new investments.

Canada and Germany are at the forefront, contributing 87% of the total inflows. In contrast, the US market has seen relatively modest participation, with last week’s inflows amounting to $30 million.

Other tokens like Solana, Polkadot, and Chainlink have also experienced positive inflows, totaling $3.5 million, $0.8 million, and $0.6 million respectively.

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