Crypto Assets See 4th Week Of Inflows Amid Race For Bitcoin ETFs

Crypto investment products experienced a consecutive fourth week of inflows as the market is optimistic about the approval of spot Bitcoin Exchange-Traded Fund (ETF) in the United States. Asset management firm CoinShares’ October 23 fund flows report indicated that a total of $66 million poured into crypto asset investment products during the week ending Oct. 20.

The total assets under management (AuM) for fund managers like Grayscale, Bitwise, CoinShares, 21Shares, and ProShares reached $33 billion, a 15% increase since September. Over the past four weeks, total inflows have risen to $179 million, a positive change for this year.

In the latest week’s inflows, Bitcoin took the lead with a whopping $55.3 million or about 83.7%. According to the data, this has increased the year-to-date inflow of Bitcoin products to $315 million.

It seems that the anticipation of a spot #Bitcoin ETF has prompted further inflows for the 4th consecutive week. Here is our analysis with @Jbutterfill.

🟢 Week 43 inflows: US$66m

🔎 Inflows are relatively low in comparison to June’s @BlackRock announcements, suggesting more… pic.twitter.com/6AkDGQJVOh

— CoinShares (@CoinSharesCo) October 23, 2023

However, CoinShares’ Head of Research, James Butterfill, pointed out that the recent week’s inflows have not yet matched the levels observed earlier this year when BlackRock initially filed for a spot Bitcoin ETF.

Butterfill said:

“While the most recent inflows are likely linked to excitement over a spot Bitcoin ETF launch in the U.S., they are relatively low in comparison to the initial inflows following BlackRock’s announcement in June.”

He added that four-week inflows in June were $807 million, and the relatively low recent inflows indicate that investors are taking a more cautious approach in the current environment.

On October 23, BTC gained 13% over a 24-hour period, reaching a peak of $35,150 before experiencing a decline. The largest cryptocurrency by market cap was trading at $34,013 at the time of writing.

Solana Leads Altcoin Inflows

Although 84% of last week’s inflows went to Bitcoin investment products, Solana secured the most substantial portion of the altcoin inflow. Last week, Solana experienced a $15.5 million influx, increasing its year-to-date total inflow to $74 million. According to the report, that makes it the most favored altcoin of the year.

On the other hand, Ethereum experienced outflows of $7.4 million the previous week, leading to a decrease in total assets under management to $6.7 billion. Coinshares noted that ongoing concerns about Ethereum sparked additional outflows, making it the only altcoin to experience such a trend last week.

Other altcoins, such as Binance Coin (BNB) and Cardano (ADA), saw small inflows of $0.2 million and $0.1 million, respectively.