Bitcoin Will See the Lion’s Share of Investments in Spot ETF Hype: CoinShares

Investments in institutional crypto products were positive for the fourth consecutive week, according to a new report from CoinShares.

The products analyzed in these reports are not direct crypto holdings, but rather exchange-traded products that track cryptocurrencies offered by Greyscale, 21shares and Proshares and others.

Last week, the total investment reached $66 million, and he plans to commit the lion's share of 83.7% or $55.3 million. Bitcoin.

Switzerland-based 21SharesAG posted the highest revenue of $45.5 million. German digital securities provider ETC Group was second with $12.2 million in revenue.

Notably, the US-based ProShares Bitcoin Strategy ETF saw 10.7 million outflows, taking its net monthly total to 20.1 million in outflows. In the year In 2023, the futures-based Bitcoin product led the way in terms of total revenue, with $238 million invested.

James Butterfield, head of research at CoinShares, wrote that the positive returns “are associated with excitement about the launch of a bitcoin ETF in the US”.

Spot Bitcoin ETF top of mind

Comparing the latest four weeks of investments following the announcement of BlackRock's Spot Bitcoin app to investments seen in June, recent investments are “relatively low.”

In June, investments were nearly $807 million, while the last four weeks saw $179 million in revenue.

Butterfill said the lower earnings “suggest that investors are taking a more cautious approach at this time.”

In the past two weeks, a handful of U.S.-based Bitcoin ETF benchmarks, including BlackRock, Fidelity and Ark Invest, have updated their offerings, which some experts interpreted as a positive development.

Grayscale filed a new registration application on October 19 to convert Bitcoin Trust Shares (GBTC) into ETFs.

The move comes shortly after the asset management firm won a lawsuit against the Securities and Exchange Commission (SEC) over the commission's earlier rejection.

Solana continues to lead altcoin revenues.

Among altcoins and after Bitcoin, Solana continues to be a favorable investment choice for investors, accounting for 23.4% of the total weekly income at $15.5 million.

Last month, Solana-based products pulled in $43 million in revenue, bringing it up to $74 million year over year. This makes Solana the preferred institutional offering after Bitcoin.

Notably, Ethereum was the only altcoin to see $7.4 million in withdrawals, up from last week's $7.5 million withdrawal.

Butterfill says the reason for this is the “continuing threat to Ethereum”.

Luke Logan, Ethereum Research Associate at CoinShares, highlighted Lido's dominance in liquidity, as well as the recent increase in Ethereum's validator volume, in a recent report on centralization concerns.

The increasing number of Ethereum verifiers threatens to increase the hardware requirements for running nodes and also to reduce the returns of individual entities.

Previously, Butterfill named Ethereum “the most popular digital asset” among exchange-traded funds (ETP) investors. Ethereum-based products saw a total of $119 million in outflows this year.