Cryptocurrency investment products have experienced a significant influx of funds in the week ending December 22, with total inflows reaching $103 million. This marks a notable reversal from the previous week, which saw outflows amounting to $16 million, according to data from CoinShares. The past 13 weeks have been predominantly positive for cryptocurrency exchange-traded products (ETPs), with inflows recorded in 12 of those weeks.
Bitcoin led the charge in terms of inflows, attracting over $87.6 million and representing 85% of the total inflows. Ethereum followed, albeit at a considerable distance, with inflows of $7.9 million. In contrast, Litecoin and Avalanche ETPs experienced net outflows, losing $0.4 million and $2.6 million, respectively.
Geographically, Germany emerged as the country with the highest inflows, contributing just over 40% to the total. Canada followed, accounting for 25% of the overall inflows. The United States and Switzerland also contributed significant amounts, with 20% and nearly 15% of the inflows, respectively. This influx of funds into crypto fund products is believed to have begun around September 29, marking a shift from the previous trend where crypto funds saw outflows in eight out of nine weeks.
CoinShares has previously hypothesized that the recent surge in inflows might be driven by traders' anticipation of the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States. Should this approval materialize, it could potentially lead to an increase in demand for cryptocurrency funds, particularly those focused on Bitcoin.
The week ending November 24 stood out as the peak period within these 13 weeks, with an impressive $346 million in net inflows. Although inflows have decelerated since that peak, the overall trend continues to be positive, indicating sustained investor interest in cryptocurrency investment products.
