Cryptocurrency Investment Products Reversal of Outflows
In the week ending Dec. 22, cryptocurrency investment productssaw inflows totaling $103 million, reversing the $16 million in outflows the previous week, according to CoinShares. This marks 12 weekly inflows in the last 13 weeks for crypto exchange-traded products (ETPs).
Bitcoin (BTC) funds saw the largest inflows of any cryptocurrency, with over $87.6 million, representing 85% of the total. Ether (ETH) came in second, posting $7.9 million in inflows. Meanwhile, Litecoin (LTC) and Avalanche (AVAX) ETPs experienced net outflows of $400,000 and $2.6 million, respectively.
When viewed by region, Germany had the largest inflows of any country, accounting for nearly 40% of the total. Canada followed with 25%, the United States with 20%, and Switzerland with nearly 15%.
The current web 3.0 market for crypto fund products appears to have begun in the week of Sept. 29. Before that, crypto funds had seen outflows for eight of the previous nine weeks.
CoinShares has previously suggested that the recent inflows of capital might be due to traders having faith that Bitcoin exchange-traded funds (ETFs) will be approved soon in the United States. Such an event could lead to a surge in demand for crypto funds, especially Bitcoin.
The week ending Nov. 24 saw the most noteworthy influx of money in the entire 13-week period, with a net total of $346 million. Although the inflows have decreased since then, the general trend still remains positive.
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