Crypto Funds Witness $346,000,000 Inflows, Here’s Why

Published: Nov 27, 2023
Written By:
Vignesh Karunanidhi
Milk Road Writer

Crypto investment products saw record inflows of $346 million last week, marking the largest weekly inflows during the current 9-week run, according to the latest report from CoinShares.

The combination of rising cryptocurrency prices and growing investor inflows has now pushed total assets under management (AuM) in these funds up to $45.3 billion, the highest level seen in over a year and a half.

  • Largest weekly inflows ($346 million) during 9-week run of rising investment
  • AuM for digital asset funds reaches $45.3 billion, highest since early 2022
  • Bitcoin funds take in $312 million, Ethereum funds see $34 million

The ongoing run of inflows, which research experts attribute to anticipation over a spot Bitcoin ETF launch in the US, represents the longest sustained period of rising investment since the 2021 crypto bull market.

Regional data shows Canada and Germany accounted for 87% of total capital inflows last week, with little contribution from US investors likely waiting for local ETF products.

Bitcoin remains strong

Bitcoin-based funds took in $312 million last week, bringing year-to-date net inflows to $1.5 billion. Short-sellers also continued to capitulate, registering a third straight week of outflows totaling $900,000. Their assets under management have fallen 61% since peak levels in April 2023.

Notably, ETP volumes represented 18% of total Bitcoin spot market volumes last week, well above historical averages. This highlights the expanding role of regulated investment vehicles in gaining crypto-asset exposure.

Ethereum Reversal Underway

Ethereum funds saw inflows of $34 million last week, tallying $103 million over the last month. This reversal almost entirely corrects the previous run of outflows in 2022 for Ethereum investment products.

Beyond the leading tokens, other crypto assets like Solana, Polkadot, and Chainlink saw minor capital inflows last week, at $3.5 million, $800,000, and $600,000, respectively.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 5 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.