Record High Inflows in Digital Asset Investment Products

According to CoinShares’ latest report, digital asset investment products received $326 million in inflows, marking the highest weekly influx since July 2022. The asset manager suggests that this increase may be due to investor optimism surrounding the potential approval of a spot-based bitcoin ETF by the US Securities and Exchange Commission.

bitcoin Dominates Inflows

bitcoin accounted for 90% of the total inflows at $296 million. Additionally, the recent surge in bitcoin prices led to an additional $15 million influx into short bitcoin investment products. ethereum, however, experienced $6 million in outflows as investors remained pessimistic.

Solana Leads in Altcoin Inflows

Solana saw the highest inflows among altcoins, totaling $24 million. Recent reports have highlighted Solana’s strong performance and significant increase in assets under management during October.

Regional Inflows and Assets Under Management

Of the total inflows, only 12% originated from the United States, amounting to $38 million. Canada, Germany, and Switzerland saw the largest inflows, with investments of $134 million, $82 million, and $50 million, respectively. Additionally, Asia experienced its highest weekly inflows at $28 million, bringing the region’s total assets under management to $37.8 billion, the highest level since May 2022.

“Month-to-date inflows are now close to half a billion dollars. While positive for bitcoin, this weekly inflow ranks as only the 21st largest on record, suggesting continued restraint amongst investors, although we do believe a spot-based ETF is now highly likely in the coming months, and will represent a step-change for the industry from a regulatory perspective.”

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bitcoin‘s Crucial $40,000 Mark

James Butterfill, CoinShares’ Head of Research, emphasized the market’s recent strength and stated that if bitcoin reaches $40,000, it would indicate a transformative shift in the crypto-asset’s regulatory perception. Butterfill believes this milestone could be achieved as early as this week, but caution is necessary as any setbacks to the projected timeline for spot ETFs could reverse the price trend. On the other hand, if bitcoin can maintain the $40,000 level over an extended period, it would likely mark the beginning of a new bullish phase for the cryptocurrency market and change the media narrative around bitcoin and the broader crypto ecosystem.

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By Team