Cryptocurrency investment products saw inflows totaling $103 million in the week ending Dec. 22, reversing the $16 million in outflows the previous week, according to CoinShares. Crypto exchange-traded products (ETPs) have now experienced 12 weekly inflows over the past 13 weeks.
US$103m inflows in digital assets last week, no report on Monday. Merry Christmas! pic.twitter.com/xAVzCrPPkQ
— James Butterfill (@jbutterfill) December 23, 2023
Bitcoin (BTC) funds saw the largest inflows for any cryptocurrency, with over $87.6 million, representing 85% of the total. Ether (ETH) was a distant second, posting $7.9 million in inflows. Litecoin (LTC) and Avalanche (AVAX) ETPs bucked the overall trend, posting net outflows of $400,000 and $2.6 million, respectively.
When viewed by region, Germany saw the largest inflows of any country at just over 40% of the total. Canada saw the second-largest, representing 25% of the total. Twenty percent came from the United States and nearly 15% from Switzerland.
The current bull market for crypto fund products appears to have begun in the week of Sept. 29. Before that, crypto funds had seen outflows for eight of the previous nine weeks.
In previous reports, CoinShares speculated that the recent string of inflows may be the result of traders’ optimism that spot Bitcoin exchange-traded funds (ETFs) will soon be approved in the United States. If that happens, demand for crypto funds, especially Bitcoin, is likely to increase.
The week ending Nov. 24 saw the largest inflows of the entire 13-week period, with a net total of $346 million. Flows have slowed substantially since then, though the underlying trend remains positive.
