Crypto Investment Products Surge with $572M in Inflows

According to CoinShares data, global crypto investment products saw a significant upswing, attracting $572 million in net inflows last week. This marks a recovery after experiencing their first outflows in almost four months the previous week. James Butterfill, Head of Research at CoinShares, reported that earlier in the week, outflows reached $1 billion, driven mainly by concerns over economic growth reflected in weak U.S. payroll figures. However, in the latter half of the week, inflows surged to $1.57 billion, likely influenced by the government’s announcement allowing digital assets in 401(k) retirement plans. In terms of regional performance, crypto funds from the U.S., Canada, and Australia led the inflows with $608 million, $16.5 million, and $7.9 million respectively. Conversely, Europe showed a bearish trend, with German, Swedish, and Swiss digital asset investment products reporting net outflows totaling $54.3 million. Ethereum investment products emerged as the market leaders, with the asset price surpassing $4,000 for the first time in eight months, bringing in an additional $268 million and marking the 13th consecutive week of inflows. Year-to-date inflows have reached a record $8.2 billion, with assets under management also peaking at $32.6 billion due to these price gains. The U.S. spot Ethereum ETFs contributed significantly to this figure, accounting for $326.6 million of the total inflows, offsetting outflows from other regions. Meanwhile, Bitcoin funds rebounded from two weeks of outflows, adding $260 million last week; however, $4 million exited short-Bitcoin products, with U.S. spot Bitcoin ETFs accounting for the bulk of this inflow at $253.2 million. Additionally, Solana, XRP, and Near-based funds reported inflows of $21.8 million, $18.4 million, and $10.1 million respectively for the week. Disclaimer: The Block is an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures is a major investor in The Block, which operates independently to deliver timely information about the crypto industry.