Inflows into major cryptocurrency investment products were also positive last week. Data from cryptocurrency fund manager CoinShares shows that for eight consecutive weeks, more money has been invested in these products than withdrawn. Bitcoin(BTC) remains the king in this space.
Cryptocurrency inflows surge to $1.3 billion
CoinShares reported that funds including Grayscale and CoinShares invested $176 million last week. This marked the eighth consecutive week of positive inflows.
Cryptocurrency investment fund inflows and outflows. Source: CoinShares.
However, inflows were slightly down compared to previous weeks. Nonetheless, last week’s positive inflows brought total investment in 2023 to $1.3 billion. However, this is much less than the total inflows in 2021 and 2020 of $1.07 billion and $6.6 billion respectively.
There are several advantages to investing in cryptocurrencies through stock exchange funds. This way, investors don’t have to hold cryptocurrencies themselves, but can instead gain exposure to crypto through more traditional avenues, such as brokers.
CoinShares noted significant changes in the ratio between cryptocurrency trading volume and the trading volume of these exchange funds:
“Interestingly, ETP [lees, beursfonds]The share of total cryptocurrency volume is rising, averaging 11% compared to the long-term historical average of 3.4%, and well above the 2020/21 bull run average. “
Bitcoin still dominates
The vast majority of inflows have gone to Bitcoin-based funds. Of these 176 million, no less than 155 million went to the BTC fund. Another positive sign is that funds based on Bitcoin shorts actually experienced outflows. By shorting, investors can profit if the price of Bitcoin falls.
Researchers say positive emotions are concentrated in one corner:
“We believe this continued positive sentiment is related to the impending approval of a spot-based Bitcoin ETF in the United States.”
Altcoins have also seen positive value. Solana Fund raised $13.6 million and Ethereum Fund raised $3.3 million. Exchange products such as Uniswap (-$550,000) and Polygon (-$860,000) saw small outflows.
Information source: Compiled from CRYPTO-INSIDERS by 0x Information.The copyright belongs to the author Timo Bult and may not be reproduced without permission.