Investors have poured $1,76 billion into cryptocurrencies in 10 weeks

The indicator has reached its maximum since October 2021

04.12.2023 - 15:18

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What’s new? For the 10th week in a row, CoinShares analysts have recorded an inflow of funds into cryptocurrency-based investment products. The total figure for this period reached $1,76 billion, the highest since October 2021, when cryptocurrency exchange-traded funds (ETFs) were admitted to the US market. Canada, Germany, and the United States saw the largest inflows from November 27 to December 3.

CoinShares’ report

What else is known? The share of funds placed in cryptocurrency products has reached 4% of the assets under management (AUM) of financial companies that provide such services. Among them, in addition to CoinShares itself, are Grayscale, 21Shares, Bitwise, and others. In total, $46,2 billion has been placed in cryptocurrency derivatives through these firms, nearly half the record set during the 2021 bull market.

Canada, Germany, and the US saw inflows of $79 million, $57 million, and $54 million, respectively. A minor outflow of $15 million was seen in Hong Kong. The experts note that the Asian region remains one of the few where the outflow is recorded. The share of assets of companies placed in crypto products, as well as the very number of cryptocurrency exchange-traded products (ETPs) there, remain at a low level.

The bulk of the total inflow last week was again provided by bitcoin ($133 million). At the same time, the flow on short positions on the asset became positive again (3,6 million).

Ethereum products received $31 million, the fifth week of inflows for the asset totaling $134 million, bringing YTD net inflows to $10 million after a long period of negative trader sentiment.

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