Nov 13, 2023

Crypto ETPs Witness Record $1 Billion Inflow in 7 Weeks

In a significant shift in the crypto investment landscape, Exchange-Traded Products (ETPs) based on cryptocurrencies have seen a substantial influx of funds, exceeding $1 billion over the past seven weeks. This trend underscores a growing investor interest in digital assets and points to a robust participation in the ongoing 2023 crypto rally.

Weekly Inflows Signal Robust Investor Interest

In the week spanning November 6-10, crypto ETPs recorded an inflow of $293 million, marking a continuous positive trend for the seventh consecutive week. This data, highlighted by CoinShares analysts, reflects the third-largest influx in the history of tracking such movements in the crypto market.

Rising Asset Values Under Management

The total value of digital assets under management (AuM) in these funds stood at $44 billion at the time of the report, showcasing a notable 9.6% increase in just one week. Year-to-date, this figure has surged by an impressive 99%.

Bitcoin ETPs Lead the Rally

Bitcoin-based ETPs accounted for 19.5% of the total trading volume of Bitcoin on the analyzed exchanges during this period. This rare occurrence suggests that investors in crypto-based ETPs are actively participating in this year's rally. In the past week alone, Bitcoin inflows in ETPs reached $240 million, contributing to a year-to-date total of $1.08 billion. In contrast, short-position Bitcoin products experienced a $7 million outflow.

Ethereum and Solana Gaining Traction

ETPs based on Ethereum saw their largest inflow since August 2022, recording $49 million in the week. Additionally, Solana-based ETPs attracted $12 million, indicating a diversifying interest in various cryptocurrencies.

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