Crypto investment products witnessed an inflow of $1.44 billion in the previous week. This has raised the year-to-date inflow to a new high of $17.8 billion according to a report by CoinShares.
The previous high was noted in the year 2021 during the bull market where the net inflow was at $10.6 billion. This is up from the previous year and it shows that there has been an increase in interest of investors in crypto this year.
Butterfill James, the Head of Research at CoinShares, has attributed the rapid increase to sustained buying at lower prices. The most recent rise in inflows reveals that investors are trying to capitalize on the current market conditions.
Bitcoin Dominance and Emerging Interest in Ethereum
The report also showed that BTC-linked products were the main recipients of the money, with $1.35 billion of net inflows. The US-based spot Bitcoin exchange-traded funds (ETFs) were the most notable, reaching $1.05 billion in the same period. Since the start of the year, these crypto funds have attracted a total of $15.8 billion in net investment.
Besides Bitcoin, the products linked with Ethereum also witnessed a similar trend in terms of investor interest. In the past week alone, these funds have attracted $72 million in net investment, the highest in three months. The increased rise can be attributed to the SEC’s expectations of approving several spot Ethereum ETFs.
Geographical Distribution of Inflows
The geographic distribution of those crypto inflows also displayed a clear regional bias. U.S.-based funds led the charge, as investors allocated $1.3 billion in net inflows. Meanwhile, products from Switzerland, Hong Kong, and Canada also attracted meaningful net inflows, to the tune of $58 million, $55 million, and $24 million, respectively.
The global reach of these inflows underscores the widespread interest in cryptocurrency investments across various markets.
Crypto Regulatory Developments
The market for crypto investment is ever-dynamic due to market conditions and legal regulations. For instance, the SEC has recently given a go-ahead in the approvals of eight spot Ethereum ETFs by established companies like Blackrock and Fidelity. These are the initial steps concerning trading these ETFs, subject to the S-1 registration statements of these ETFs becoming effective.
The trading volume of cryptocurrency exchange-traded products also decreased during this period as well. Nevertheless, the trading activities were much lower than the average $21 billion per week recorded this year, standing at $8.9 million in the previous week.
The changes noticeable in the crypto fund market demonstrate that the market is still evolving in response to the investors’ interests and legal frameworks. The record inflows into cryptocurrency investment products last week also show that investors are still confident in the market.
