- Digital asset products recorded inflows totaling $1.2 billion last week, marking a third consecutive week of positive flows.
- Bitcoin ETFs witnessed the highest inflows, totaling $1 billion, as BTC supply in profit remained above 80%.
- Ethereum ETFs recorded inflows of $87 million despite varying sentiment among altcoins last week.
CoinShares' weekly report on Monday indicates that digital asset investment products recorded inflows totaling $1.2 billion last week after the Securities & Exchange Commission (SEC) approved options trading for Bitcoin ETFs. Additionally, Ethereum ETFs posted inflows for the first time in five weeks, in this case totaling $87 million as the altcoin market witnessed mixed sentiment.
Crypto products see inflows as monetary policy expectations linger
Crypto investment products recorded inflows of $1.2 billion last week, marking a third consecutive week of inflows, according to CoinShares' weekly report on Monday.
Last week's inflows were the highest recorded since July, stirred by growing expectations of "dovish monetary policy in the US" and the SEC’s approval of options trading for BlackRock's iShares Bitcoin Trust (IBIT). However, trading volumes among crypto ETFs declined week-on-week by 3.1% despite a 6.2% rise in assets under management (AuM).
Weekly Crypto Asset Flows
Regionally, the US saw the most volumes, recording inflows of $1.2 billion. Switzerland also witnessed $84 million in inflows, its highest since mid-2022. Conversely, Germany and Brazil saw outflows of $21 million and $3 million, respectively.
Asset-wise, Bitcoin ETFs remained the highest gainers, recording inflows of $1 billion. The inflows may have received a boost following the SEC's approval of options trading for BlackRock's IBIT.
Bitcoin’s price has shown remarkable strength in the past three weeks, rising over 14% from $55,000 to $64,000. BTC has declined by 3.1% in the past 24 hours and trades at $63,691 at publishing time.
CryptoQuant analyst Axel Adler points to a decline in Bitcoin's Exchange Flow Multiple, suggesting that long-term BTC investors are retaining their holdings, which is an initial sign of a bull run.
Additionally, CryptoQuant CEO Ki Young Ju opines that Bitcoin is still in the middle of a bull cycle as its market capitalization has continued to outpace its realized cap. He further adds that the growth may be due to bulls leveraging exchanges for trades trading as opposed to on-chain, over-the-counter (OTC) trading among bears.
Furthermore, Bitcoin's supply in profit remains above 80%, which historically signals a bull cycle, per SignalQuant via CryptoQuant.
BTC Supply in Profit (%)
Altcoins experienced varying sentiment last week, with global Ethereum products recording inflows of $87 million after five weeks of net outflows that date back to August.
In contrast, Solana ETFs saw outflows totaling $4.8 million. Other altcoins that recorded negative flows include Binance and Stacks, which posted $1.2 million and $0.9 million in outflows, respectively.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Could a Solana ETF debut in 2025? Expert weighs in
Solana (SOL) made the rounds across crypto communities on Friday as key executives from VanEck and BlackRock gave contrasting views on the possibility of a SOL exchange-traded fund (ETF) launching in the US.
Cardano Price Prediction: ADA soars 18%, eyes $0.8104 following increased buying pressure and recent rumors
Cardano (ADA) is up 18% on Friday following rumors of the federal government leveraging its blockchain to build a blockchain-based election voting system.
Ethereum Price Forecast: ETH could stage 60% rally despite recent decline
Ethereum (ETH) is trading near the $3,000 psychological level on Friday, as its rising exchange reserve and declining network fees hint at potential reasons for its recent price decline.
EU’s strict screening measures signal a regulatory shift in crypto
The European Banking Authority (EBA) has released guidelines to enhance compliance for financial institutions, payment service providers (PSPs) and crypto asset service providers (CASPs) in the European Union (EU).
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.