Crypto investment products in the United States take the stage as fund flow tops $1.2 billion.
Digital asset investment products recorded about $1.2 billion in funds flow globally, marking the third week of consecutive inflows. According to CoinShares, this includes global crypto funds run by top investment asset management firms like BlackRock Inc (NYSE: BLK), Bitwise, Fidelity Investments, Grayscale Investments, ProShares, and 21Shares. Noteworthy, United States spot Bitcoin ETFs accounted for $1.1 million of the total inflows.
Similarly, Switzerland-based crypto investment products recorded net inflows of $84 million. Unfortunately, Germany and Brazil-based funds saw net outflows of $21 million and $3 million, respectively.
Bitcoin Products Lead Inflows with $1 Billion
Apart from being the third consecutive week of inflows, this recent development also signified the largest positive inflows in 10 weeks. CoinShares Head of Research James Butterfill noted that the momentum was driven by “continued expectations of dovish monetary policy in the US and associated positive price momentum, with total assets under management rising by 6.2% last week.”
Furthermore, the United States Securities and Exchange Commission (SEC) approved trading options for BlackRock’s spot Bitcoin ETF IBIT this past week. This may have contributed to the positive sentiment that the digital asset investment product recorded. Conversely, trading volumes for most of these offerings did not improve. Instead, they plummeted 3.1% week-over-week.
CoinShares data shows that most of the net inflows went to Bitcoin-based investment products, which were around $1 billion globally. On the other hand, short Bitcoin investment products generated net inflows of $8.8 million. This result coincides with the period when the Bitcoin price gained 3.5% last week.
At the time of this writing, Bitcoin BTC $67 944 24h volatility: 1.6% Market cap: $1.36 T Vol. 24h: $49.19 B was trading at $63,456.02, corresponding with a 3.12% dip in the last 24 hours.
Ethereum Investment Products Registers Inflows as Price Drops
Ethereum-based investment products also saw some positive sentiment this past week. These products have been under the spell of negative flows for the last five weeks. On September 23, Ethereum ETFs witnessed massive outflows, causing more than $79 million to exit the funds. On Monday, Grayscale Ethereum ETF (ETHE) led with the most outflows at $80.6 million.
Inversely, Bitwise’s ETHW recorded inflows of $1.3 million, while Ethereum ETFs registered zero inflows in all other spot ETF products.
There has been speculation that institutional demand for the world’s second-largest asset class is waning. However, it broke out in the same week, with global funds adding $87 million. Of these inflows, the US spot Ethereum ETF accounted for $85 million of the net inflows alone. This is the largest net weekly inflow that these Ethereum ETFs have experienced since early August.
Recently, Ethereum’s ETH $1 988 24h volatility: 1.9% Market cap: $239.96 B Vol. 24h: $20.43 B price witnessed a strong recovery, gaining more than 15% weekly. It even reached a support level of $2,700, but with some fluctuations, the altcoin has seen a significant drop in market value. At press time, the cryptocurrency traded at $2,600.34 after losing 1.57% of its value in the last 24 hours and 1.94% in 7 days.
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