Digital asset investment funds recorded a record net outflow of $326 million (around IDR 5.1 trillion) last week, marking the largest single-week inflow since July 2022.
According to a recent report from CoinShares, the surge in investor interest can be attributed to growing optimism surrounding the potential approval of a spot-based Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC).
“Monthly inflows are now approaching half a billion dollars,” the report said, noting that this shows increased investor confidence.
While weekly inflows are undoubtedly positive for Bitcoin, it is worth noting that Bitcoin only ranks as the 21st largest in history, indicating that investors are still cautious.
However, industry experts believe that approval of a spot-based Bitcoin ETF in the coming months is very likely.
The approval would represent a significant regulatory milestone for the industry and could potentially encourage further investment.
Regionally, the United States only accounted for 12% of the fund's $38 million (around Rp. 600 billion) inflow, as investors eagerly await the potential launch of a spot-based ETF.
The main contributors to inflows were Canada, Germany, and Switzerland, with inflows of $134 million (approximately Rp. 2.1 trillion), $82 million (approximately Rp. 1.3 trillion), and $50 million (approximately Rp. 794 Billion).
Interestingly, Asia also experienced a spike in weekly inflows, reaching $28 million (Approx. IDR 444 Billion).
With total assets under management now reaching $37.8 million (approximately Rp. 587 billion), the highest since May 2022, the digital asset market is experiencing substantial growth.
Bitcoin Dominates Weekly Inflows
Bitcoin dominated inflows, capturing 90% of the $296 million total.
However, the recent price surge also prompted inflows of $15 million (Approx. IDR 238 Billion) into short-term Bitcoin investment products, reflecting the hedging strategy used by some investors.
Apart from Bitcoin, Solana experienced significant inflows of $24 million (Approx. IDR 381 Billion).
Although several other altcoins also experienced inflows, this wave of optimism did not extend to Ethereum, which experienced outflows of $6 million (Approx. IDR 95 Billion).
Anticipation of spot ETF approval has led to a surge in Bitcoin prices in recent weeks.
The cryptocurrency rallied toward $35,000 earlier this month, driven by market speculation around the potential approval of a spot ETF.
The surge in price not only caught the attention of investors but also sparked new interest in crypto trading, which led to a significant increase in daily exchange volume.
As reported, the seven-day moving average for spot exchange volume across leading platforms broke an impressive $24 billion mark on October 26, a level not seen since late March.
