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Last week, inflows into cryptocurrency-related investment products surged to over $1 billion as investors flocked to the newly introduced spot Bitcoin exchange-traded funds (ETFs) in the United States.
According to its latest weekly report, CoinShares revealed a significant rise in total inflows into cryptocurrency products, reaching $1.18 billion (subject to T+2 settlement) during the specified timeframe.
Although this amount indicates a substantial increase, it is still below the $1.5 billion recorded in October 2021, when U.S. regulators approved futures-based Bitcoin ETFs.
Additionally, CoinShares reported that the trading volume for these crypto products surged to $17.5 billion last week, marking the highest level on record. This figure is nearly nine times greater than the average weekly volume of $2 billion in 2022.
James Butterfill, CoinShares’ head of research, stated:
“These trading volumes accounted for nearly 90% of daily trading volumes on reputable exchanges last Friday, which is unusually high as they typically range between 2%-10%.”
Bitcoin, U.S. leads inflows
A detailed analysis of the inflows by asset indicates that Bitcoin attracted the most, with $1.16 billion, which constitutes 3% of BTC‘s total assets under management (AuM) of $38.7 billion.
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This trend also extended to Short Bitcoin products, as investors with pessimistic views on the emerging sector invested over $4 million in positions against it.
Other cryptocurrencies such as Ethereum, XRP, and Solana experienced notable inflows of $26 million, $2 million, and $200,000, respectively.
In a similar vein, blockchain equities saw substantial inflows totaling $98 million, bringing their total inflows over the past seven weeks to $608 million.
Regionally, the U.S. led the flow trend, bolstered by its recent approval of spot BTC ETFs. According to CoinShares, investors in the U.S. contributed $1.2 billion to the market, while other regions such as Switzerland, Australia, and Brazil recorded inflows of $21 million, $2.3 million, and $5.6 million, respectively.
Conversely, investors in Canada and European nations like Germany and Sweden experienced outflows of $44 million, $27 million, and $16 million.
The asset manager indicated that the outflows from these regions might be related to “basis traders looking to transition from Europe to the U.S.”
Meanwhile, Grayscale, one of the issuers of the newly launched ETFs, faced outflows of $579 million last week.
Bloomberg analyst Eric Balchunas suggested that these outflows could be linked to investors moving away from the ETF’s high management fees and that traders might be realizing profits from the significant reduction of its previous discount.
The post Record-breaking $17.5 billion traded in crypto products following Bitcoin ETF debut appeared first on CryptoSlate.
