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Wednesday, December 4, 2024

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

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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.

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