A wave of investor interest has surged through digital asset investment products, propelling a record-breaking influx of $346 million. This surge stands as the most substantial weekly inflow since the latter part of 2021 and finds its genesis in anticipation of the impending launch of a spot Bitcoin Exchange-Traded Fund (ETF) in the United States.
According to the latest data from Coinshares Digital Asset Fund Flows Weekly Report, Bitcoin led the way in this positive movement, attracting an impressive $312 million inflows over the last week. Notably, this considerable influx catapulted Bitcoin’s year-to-date total to a formidable $1.5 billion, underscoring a fervent rekindling of investor faith in the pioneering digital asset.
ETF Anticipation Fuelling the Largest Surge in Inflows Since Late 2021https://t.co/kadC8aRml5
— James Butterfill (@jbutterfill) November 27, 2023
Short-Selling Decline Fuels $45.3B Crypto AUM
A noticeable decline in short-selling activity across the cryptocurrency landscape proves that general market sentiment experienced a noteworthy shift. This pivot signifies a palpable shift in investor confidence, with the decreased short-selling juxtaposed against the substantial surge in Bitcoin inflows.
Ethereum, the second-largest cryptocurrency by market capitalization, has concurrently embraced a resurgence of interest among investors. After registering an inflow of $34 million the preceding week, Ethereum nearly nullified its year-long outflows, marking a significant pivot in investor sentiment towards the altcoin. Over a concise span of four weeks, Ethereum accumulated a commendable $103 million in inflows, affirming its regained traction and investor confidence.
Bitcoin ETF Speculation Sparks Investor Optimism
The ongoing momentum encapsulates a remarkable nine-week streak of inflows, indicative of a prevailing optimism pervading the market. Much of this buoyancy stems from the fervent anticipation encircling the impending launch of a Bitcoin spot ETF in the U.S., a development poised to reshape the landscape of cryptocurrency investment products significantly.
Simultaneously, the total assets under management (AUM) for digital asset products surged to an impressive $45.3 billion, marking a notable milestone as the figures soared to their highest point in over eighteen months. This exponential growth in AUM is attributed to surging prices and a surge in fresh investments flooding into the market.
Canada, Germany Drive 87% of $346M Inflows
Amid this monumental influx, global contributions played a pivotal role, with Canada and Germany emerging as the primary drivers, collectively accounting for a dominant 87% of the total inflows. In contrast, the U.S. market, although participating, exhibited relatively restrained enthusiasm, with inflows amounting to a modest $30 million.
In the broader crypto landscape, altcoins demonstrated commendable momentum, with tokens like Solana, Polkadot, and Chainlink witnessing positive inflows totalling $3.5 million, $0.8 million, and $0.6 million, respectively. This altcoin resurgence further reinforces the sweeping optimism in the cryptocurrency investment sphere.
