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Spot ETF Optimism Fuels Record Eight-Week Streak of Net Crypto ETP Inflows

Market optimism over the potential approval of a crypto spot ETF by the U.S. Securities and Exchange Commission (SEC) has driven inflows for eight straight weeks in exchange-traded products (ETPs), according to the latest weekly report from CoinShares.

According to the report, these crypto investment products attracted inflows totaling $176 million last week, bringing the cumulative inflows to $1.32 billion.

Additionally, the share of ETPs in total crypto volume has increased significantly, accounting for approximately 11%, surpassing the long-term historical average of 3.4% and the averages seen during the 2020/21 bull market.

Despite this milestone, overall inflows for ETPs this year remain significantly lower than during the bull markets of 2020 and 2021, when inflows into these products were $6.6 billion and $10.7 billion, respectively. of dollars.

Bitcoin dominates

A breakdown of inflows by asset class shows that Bitcoin continues to dominate the sector.

According to CoinShares, BTC investment products saw $155 million in inflows last week due to the prevailing positive sentiments surrounding the possibility of a spot ETF.

“We believe this continued positive sentiment is related to the imminent approval of a spot Bitcoin ETF in the United States,” CoinShares said.

Meanwhile, the last eight consecutive weeks of inflows represent approximately 3.4% of the flagship digital assets under management total of $30.7 billion.

Conversely, Short Bitcoin saw its second consecutive week of outflows, losing $8.5 million. This reflects growing investor optimism about a potential increase in the value of BTC.

Data from CryptoSlate shows that the leading cryptocurrency is up around 25% over the past 30 days and over 100% over the past year.

Other altcoins such as Solana, Ethereum, and Avalanche saw inflows of $13.6 million, $3.3 million, and $1.8 million, respectively. However, Uniswap and Polygon saw minor outflows of $550,000 and $860,000, respectively.

Among regions, Canada, Germany and Switzerland contributed the majority of inflows, with $98 million, $63 million and $35 million, respectively. In the United States, investors remain cautious as they withdrew $19 million in assets from futures products.

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