Record Trading Volumes in Crypto Investment Following Spot Bitcoin ETFs Launch
Summary:
Crypto investment products reached a new weekly trading volume record of $17.5 billion, driven by the launch of spot Bitcoin ETFs. The U.S demonstrated the most growth with $1.24 billion inflows, while German and Swedish products saw significant outflows. Bitcoin products led the charge with inflows of $1.16 billion, followed by Ether funds. ProShares Bitcoin Strategy ETF recorded the highest weekly inflows of $265.2 million.
Crypto investment products have seen a surge in trading volumes, reaching a new weekly high of $17.5 billion, following the introduction of spot Bitcoin ETFs. According to CoinShares' Digital Asset Fund Flows report published on January 15, the research department, led by James Butterfill, disclosed that the trade volumes in the week that concluded on January 12, were the all-time high, with the weekly trading volume averaging about $2 billion in 2022. Butterfill pointed out that these volumes accounted for nearly 90% of the trusted exchanges' daily trading volumes on Friday, January 12, a notable increase considering they usually range from 2% to 10%.
Weekly inflows reached $1.18 billion. However, this did not break the record set by the October 2021 Bitcoin futures ETF launches, which drew in $1.5 billion in the first week. American products dominated, contributing $1.24 billion to the inflows, while German and Swedish products experienced outflows - $27 million and $15.5 million respectively - as traders migrated from Europe to the U.S.
The most extensive country-based outflows were recorded from Canadian products, totaling $44.2 million, while Swiss products recorded inflows of $24.2 million. Bitcoin products attracted the largest inflows for the week with $1.16 billion. Ether (ETH) funds weren't far behind, registering almost $25 million, and short Bitcoin funds saw inflows of $4.1 million.
XRP funds followed with $2.2 million in inflows. Notably, Solana (SOL) funds saw significantly lower inflows, at just $500,000. The ProShares asset managers' crypto-linked ETFs, including the Bitcoin Strategy ETF (BITO), experienced the largest weekly inflows with $265.2 million. Meanwhile, Grayscale Investments' products recorded outflows totaling $579.1 million.
Published At
1/16/2024 3:47:51 AM
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