Cryptocurrency Investments Spike to $103M: Bitcoin Leads Amid Market Optimism
Summary:
Digital currency-based investment entities recorded a net inflow of $103 million in the week ending December 22, a significant upturn from the prior week's net outflow of $16 million, as reported by CoinShares. Bitcoin (BTC) led the charge with an inflow of over $87.6 million or 85% of the total, while Litecoin (LTC) and Avalanche (AVAX) recorded net outflows. Geographically, Germany accounted for over 40% of the total inflows, followed by Canada at 25%, the United States at 20%, and Switzerland at 15%. CoinShares links the ongoing rise in crypto fund market to the speculations about the possible approval of Bitcoin ETFs in the US.
In the week concluding on December 22, investment products related to cryptocurrency reversed their outgoing tide from the prior week of $16 million and instead experienced an influx of $103 million dollars, as reported by CoinShares. Over the course of the last 13 weeks, there have been 12 weeks in which crypto exchange-traded products (ETPs) saw an increase of incoming funds.
During this period, the highest inflows were recorded by Bitcoin (BTC) funds, which brought in over $87.6 million, accounting for 85% of the total amount. Ethereum (ETH) came in next with an inflow of $7.9 million. On the other hand, Litecoin (LTC) and Avalanche (AVAX) ETPs did not follow the norm and instead recorded net outflows of $400,000 and $2.6 million, respectively.
When analyzed by region, close to half of the incoming funds were from Germany, which represented over 40% of the total. The second highest contributor was Canada, which accounted for a fourth of the total inflows. Thereafter, 20% of the inflows were from the USA, while close to 15% came from Switzerland.
It appears that the current upswing in the market for crypto fund products started in the last week of September. Prior to this, outflows had been seen from crypto funds in eight out of the previous nine weeks. CoinShares has suggested in past reports that the consecutive inflows could be attributed to investor anticipation regarding the soon-to-be-approval of spot Bitcoin exchange-traded funds (ETFs) in the United States. Should this come to pass, it is expected to cause a surge in demand for crypto funds, most notably Bitcoin.
The week that concluded on November 24 observed the highest inflows over the entire 13-week period, with a net total inflow of $346 million. Although the pace has reduced considerably since then, the underlying positive trend persists.
Published At
12/25/2023 9:57:51 PM
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