Crypto Inflows Soar to $1.32B YTD as Anticipation Grows for Spot-Based ETF Approval: CoinShares

Dig­i­tal asset invest­ment prod­ucts expe­ri­enced a cumu­la­tive inflow of $176 mil­lion in the past week, mark­ing the eighth con­sec­u­tive week of pos­i­tive week­ly inflows.

The share of total cryp­tocur­ren­cy vol­umes held by Exchange-Trad­ed Prod­ucts (ETPs) is on the rise, aver­ag­ing 11%, sig­nif­i­cant­ly sur­pass­ing the long-term his­tor­i­cal aver­age of 3.4%. The lat­est data sug­gest that this cur­rent per­cent­age is also notably high­er than the aver­ages observed dur­ing the 2020/21 bull market.

YTD Inflows Surge to $1.32 Billion

The dig­i­tal asset invest­ment prod­ucts attract­ed inflows amount­ing to $176 mil­lion, extend­ing a streak of eight con­sec­u­tive weeks of pos­i­tive week­ly inflows and bring­ing year-to-date inflows to $1.32 bil­lion. How­ev­er, the recent inflows lag sig­nif­i­cant­ly behind the sub­stan­tial fig­ures of $10.7 bil­lion in 2021 and $6.6 bil­lion in 2020.

Accord­ing to Coin­Shares, the trad­ing vol­umes in Exchange-Trad­ed Prod­ucts (ETPs) have main­tained an aver­age of $3 bil­lion per week, twice the aver­age record­ed this year at $1.5 billion.

Inter­est­ing­ly, the ETP share of total cryp­to vol­umes is on the rise, stand­ing at an aver­age of 11%. It sur­passed the long-term his­tor­i­cal aver­age of 3.4%, notably exceed­ing the aver­ages observed dur­ing the 2020/21 bull market.

In terms of geo­graph­i­cal dis­tri­b­u­tion, Cana­da, Ger­many, and Switzer­land main­tained pos­i­tive inflows of $98 mil­lion, $63 mil­lion, and $35 mil­lion, respec­tive­ly. How­ev­er, the Unit­ed States expe­ri­enced out­flows amount­ing to $19 mil­lion from futures-based products.

Addi­tion­al­ly, Brazil, France, and Aus­tralia set­tled with $1.1 mil­lion, $1.1 mil­lion, and $0.8 mil­lion respectively.

Bitcoin Leads, But Altcoins Not Far Behind

Bit­coin remains the dom­i­nant play­er, attract­ing $155 mil­lion in inflows over the past eight weeks, con­sti­tut­ing 3.4% of Assets under Man­age­ment (AuM). On the oth­er hand, short-bit­coin wit­nessed out­flows of $8.5 mil­lion last week. This ongo­ing pos­i­tive sen­ti­ment was attrib­uted to the antic­i­pat­ed approval of a spot-based Bit­coin ETF in the Unit­ed States.

Alt­coins also wit­nessed inflow in the past week, with Solana lead­ing with a whop­ping $13.6 mil­lion. Ethereum also appears to have bounced back from slum­ber, record­ing $3.3 mil­lion, fol­lowed by Avalanche with $1.8 mil­lion dur­ing the same peri­od. Trail­ing behind were Car­dano, XRP, and Lite­coin with $0.8 mil­lion, $0.5 mil­lion, and $0.4 mil­lion, respectively.