Crypto currencies see biggest weekly gain in over a year: CoinShares
Crypto exchange-traded products (ETPs) saw their biggest weekly gains in more than a year, according to an October 30 report from asset management platform CoinShares. Revenue for the week of October 27 was $326 million, up $66 million from the previous week.
Digital asset investments saw US$326m in revenue, the biggest one-week inflow since July 2022.
These numbers are due to the fact that we believe that the US SEC is preparing to approve a spot-based Bitcoin ETF in the US and that there is a growing expectation from investors.
– #Bitcoin –… pic.twitter.com/AbgsgjcaOz
— CoinShares (@CoinSharesCo) October 30, 2023
ETPs are mutual funds whose bonds or shares are designed to track the value of a particular asset. In crypto ETFs, you track the price of cryptocurrencies with a large market cap, such as Bitcoin (BTC) or Ether (ETH). Some investors may hold shares of these funds in a traditional brokerage account, preferring exposure to crypto prices rather than holding them in the funds themselves.
An ETP's “flow of income” occurs when the fund's price rises faster than the underlying asset's, causing the fund to buy the asset. This is generally seen as a bully for the original property. In contrast, “outflows” occur when the fund has to sell assets because the value of their notes or stocks is declining relative to their target, which is often seen as bearish.
According to CoinShares, weekly revenue for the week ending October 27 was $326 million. This was the highest 15 months prior to July 2022. It was also the fifth straight week of ETP gains.
Related: Gary Gensler's Bitcoin ETF Position Is ‘Inconsistent'… Says Gary Gensler
According to CoinShares, one explanation for the sudden increase in earnings could be “optimism from investors for the US Securities and Exchange Commission's approval of a spot-based Bitcoin ETF in the US”, which could suggest possible earnings. To US-based funds after approval.
Although the flow of income increased significantly, it represented only the 21st largest increase recorded so far this week, CoinShares said. Last week, the largest weekly income went to Bitcoin ETPs, which represented 90% of the total. Solana's SOL ( SOL ) benefited from the optimism in the market, posting $24 million in revenue. However, Ether funds went in the opposite direction, losing an estimated $6 million.
Despite many applications over the years, the SEC has yet to approve a Bitcoin ETP space. Van Eck revised his application on October 19, presumably to comply with the agency's concerns. Hashdex also contacted the SEC on October 25th to get their position Bitcoin ETP approved.
