Spot ETF anticipation drives $346M into digital assets

David Heredia November 29, 2023
Spot ETF anticipation drives $346M into digital assets

Digital asset investment products recorded inflows of $346 million last week. This represented the largest single week of fund flows in the nine consecutive weeks of inflows recorded so far, digital asset investment firm CoinShares found in a new report.

According to the report, last week’s surge in inflows was due to the anticipation of the launch of a spot-based ETF in the U.S.

CoinShares found that last week’s $346 million represented the largest weekly inflow since the bull market experienced during the 2021 market cycle. 

During the week under consideration, many crypto assets recorded price upticks. Bitcoin [BTC] for example, saw its value rise by almost 5% between the 18th and the 24th of November. 

Due to the combined impact of increasing asset prices and inflows into crypto funds, total assets under management (AuM) reached a peak of $45.3 billion last week. The investment firm noted that this represented its highest level in the last 18 months.

On a regional level, most of last week’s flows into crypto funds came from Canada and Germany, with inflows of $199 million and $102 million, respectively.  As for the U.S., there was “low participation,” which CoinShares opined might be due to investors waiting for the ETF launch. 

During the week under review, investment products backed by leading crypto BTC recorded inflows of $312 million. This represented 90% of all inflows seen in that week.

This significant inflow into BTC-backed products pushed the coin’s year-to-date (YTD) above $1.5 billion, and its month-to-date (MTD) inflow tethering closer to $1 billion. 

Within the week considered, BTC’s AUM totaled $32.3 billion, enjoying a 75% share of the entire market’s total AUM of $45 billion. 

As for short-Bitcoin products, they recorded their third week of consecutive outflows. This resulted in a significant decline in AuM. The report further stated:

Signaling a “decisive turn-around in sentiment,” last week’s influx of $34 million marked the fourth-consecutive week of inflows for Ethereum [ETH].

David Heredia