Cryptocurrency-based investment funds are attracting the most money since the middle of last year, amid confidence fueled by the possible approval of a Bitcoin spot ETF by the US securities regulator.
According to Coinshares’ 155th report on digital asset fund flows, these investment products have seen the largest inflows since June 2022.
Coinshares analyst James Butterfill noted that this week, A total of $326 million has entered cryptocurrency-based investment funds, which represents the largest week of inflows for these funds in the last 16 months.
Investors looking for alternative crypto investments are becoming increasingly optimistic about the potential approval of a Bitcoin exchange-traded fund, or ETF, in the U.S. market, Butterfill said. This growing optimism has led to “the largest inflows in a year and a half,” he noted.
Bitcoin and Solana, investors' favorite cryptocurrencies
Bitcoin, the leading cryptocurrency by market cap, accounted for 90% of this week's inflows, totaling $296 million.
Source: Coinshares
Investment funds based on Solana, which remains as The altcoin that investors love, also attracted strong inflows in the past week, recording a total of $23,9 million.
Also, according to the Coinshares report, Short-term investment products on Bitcoin also sparked interest among investors, with a total of $15 million in tickets since last Monday.
Ethereum, on the other hand, continues to see outflows, likely due to ongoing concerns about the blockchain network.
Bitcoin Fund Flow Increases Over 400% This Week
Compared to data from Coinshares' report last week, Bitcoin-based fund inflows have increased by 435%.
According to the firm's data, on Monday, inflows into Bitcoin funds stood at around $55,3 million, while short-term investment products in this cryptocurrency registered $1,6 million in inflows last week.
Source: Coinshares
Butterfill concludes that growing investor optimism regarding a Bitcoin spot ETF is what is driving this positive move for Bitcoin and crypto assets. Still, compared to fund flows recorded in previous weeks, recent inflows rank as the 21st most favorable week for Bitcoin, suggesting that there is still a certain level of restraint on the part of investors, the analyst noted.
Where do the biggest crypto inflows come from?
While the potential approval of a Bitcoin spot ETF in the United States is fueling growing optimism among cryptocurrency investors, only 12% of fund flows this week came from the United States, Butterfill said.
According to the report, the majority of inflows came from Canada, Germany and Switzerland, with inflows of $134 million, $82 million and $50 million, respectively. Additionally, $28 million came from Asia, representing one of the largest weekly inflows for this region.
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