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November 27, 2023

Institutions Expecting ETF Spark Largest Capital Inflows to Crypto Since Late 2021: CoinShares

By Daily Hodl Staff

Digital assets manager CoinShares says institutional crypto products saw their biggest surge of inflows in two years.

In its latest Digital Asset Fund Flows report, CoinShares finds that institutional investors are continuing to invest heavily in digital asset investment products for the ninth week in a row.

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“Digital asset investment products saw inflows totaling US $34 6million last week, the largest weekly inflows in this 9 consecutive week run.”

Source: CoinShares

According to CoinShares, the inflows were likely spurred by the anticipation of the launch of a spot-based exchange-traded fund (ETF) for crypto, presumably starting with Bitcoin (BTC).

“This run, spurred by anticipation of a spot-based ETF launch in the US, is the largest since the bull market in late-2021.”

As usual, BTC took the king’s share of the inflows at $312 million. According to CoinShares, a high percentage of the BTC trading volumes were exchange-traded products (ETPs).

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“ETP volumes as a percentage of total spot Bitcoin volumes remain well above average, representing 18% last week, highlighting the continued increased use of ETPs to gain exposure to the asset class.”

Altcoins also fared well last week. Ethereum (ETH) raked in $34 million in inflows last week, while ETH-rival Solana (SOL) brought in $3.5 million. Cardano (ADA), XRP, Polkadot (DOT) and Chainlink (LINK) saw $0.6 million, $0.2 million, $0.8 million and $0.6 million in inflows respectively.

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Featured Image: Shutterstock/PHOTOCREO Michal Bednarek