May 19, 2024

Investment in Crypto Climbs to $1.32B Year-To-Date on Rising Hopes for Spot-Based ETF Approval: CoinShares

Last week, investment products backed by digital assets received a total inflow of $176 million last week, continuing a streak of eight weeks of positive weekly inflows.

The percentage of cryptocurrency holdings owned by exchange-traded products (ETPs) is increasing, with an average of 11%, which is far higher than the 3.4% historical average. The current proportion seems to be much greater than averages seen throughout the 2020–21 bull market, according to the most recent statistics.

Investments have reached $1.32 billion so far
The investment products involving digital assets brought in $176 million, bringing the total to $1.32 billion for the year so far. This extends a run of eight weeks in a row of positive weekly inflows. Fresh investments, however, are much lower than the huge sums of $10.7 billion in 2020 and $6.6 billion in 2021.

Trading volumes in exchange-traded products (ETPs) have remained consistent at $3 billion every week, according to CoinShares. This amount is twice the average recorded this year at $1.5 billion.

Notably, ETP’s proportion of overall crypto volumes is increasing and now stands at 11%. In particular, it outpaced the norms observed during the bull market of 2020 and 2021, which were 3.4% on average during the last century.

Among the countries that received money, Canada received $98 million, Germany $63 million, and Switzerland $35 million. Recorded cash outflows of $19 million from futures-based instruments in the US.

Furthermore, a settlement of $1.1 million was reached with Brazil, $1.1 million with France, and $0.8 million with Australia.

Bitcoin is at the head of the pack, but altcoins are chasing behind
The leading participant is still Bitcoin, which has received $155 million in eight weeks and accounts for 3.4% of assets under management (AuM). On the other hand, $8.5 million was left in short-bitcoin last week. We expect the US government to approve a spot-based Bitcoin ETF, which is driving this persistently bullish mindset.

While altcoins had inflows of their own last week, the most impressive of them was Solana, which netted $13.6 million. Along with Avalanche, Ethereum seems to have woken up, as it recorded $3.3 million, while Ethereum itself recorded $1.8 million. Cardano ranked second with $0.8 million, XRP in third with $0.5 million, and Litecoin in fourth with $0.4 million.

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