Crypto Investments Reach New Peak with Record Inflows into ETP Products

Cryptocurrency investment products have reached a new milestone, with weekly inflows totaling a staggering $346 million. This is the highest number observed in the last nine weeks. This notable increase was mainly driven by Bitcoin-related Exchange-Traded Products (ETP), which alone recorded $312 million in new investments.

The week ending November 24th saw a significant influx of capital into the crypto sector, as reported by CoinShares. Therefore, this growth reflects an increase in investor interest and a possible change in the market’s perception of the long-term potential of cryptocurrencies.

New record of inflows with US$346m this week, the highest total observed in the past 9 weeks of inflows.

– #Bitcoin –
$BTC: US$312m inflows (year-to-date inflows US$1.5bn)
Short Bitcoin: US$0.9m outflows

ETP volumes as a percentage of total spot Bitcoin volumes… pic.twitter.com/gMUPzTy0q4

— CoinShares (@CoinSharesCo) November 27, 2023

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Bitcoin and Ethereum ETP Products Lead Crypto Industry Entries

Ethereum also witnessed a significant increase in inflows, with $34 million invested, signaling a turnaround in the market towards this cryptocurrency. Other altcoins such as Solana (SOL), Polkadot (DOT), and Chainlink (LINK) also saw inflows of $3.5 million, $0.8 million, and $0.6 million, respectively, indicating renewed interest in these digital currencies.

James Butterfill, head of research at CoinShares, noted that the current series of inflows into crypto products is the largest since the last bull market. At first, the trend of positive net inflows will continue, influenced by sentiment around the potential approval of a US cash-based ETF.

Bitcoin ETPs, in particular, have seen a substantial increase, bringing the total inflow count for the leading cryptocurrency to $1.5 billion year-to-date. In contrast, Bitcoin short products experienced outflows of $0.9 million.

Ethereum, in turn, is on a four-week streak totaling $103 million in inflows, almost reversing the series of outflows seen in 2023. However, the CoinShares team attributes this phenomenon to a decisive shift in market sentiment, potentially influenced by recent events. For example, the filing of an Ethereum ETF in cash by BlackRock.

Sustained Growth in Investments Signals Optimism in the Cryptocurrency Market

Total assets under management in crypto funds reached US$45.4 billion, the highest level since May last year. The growth mainly highlights investors’ confidence in the sector. Total cumulative inflows into cryptocurrency ETPs surpassed the $1 billion mark earlier this month. Therefore, reinforcing the upward trend in investment in crypto assets.

These developments indicate a continued increase in investor interest and confidence in cryptocurrencies, suggesting a promising future for the sector.

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The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.