Inflows into Bitcoin investment products reach up to $1.5B per year
Bitcoin (BTC) exchange-traded products (ETPs) recorded an inflow of $312 million for the week of November 24, bringing the year-to-date revenue to $1.5 billion, CoinShares reported. Weekly inflows across all cryptocurrencies reached $346 million, continuing a nine-week trend of positive net inflows.
A new revenue record this week at US$346m, the highest total seen in the last 9 revenue streams.
– #Bitcoin –$BTC: US$312m inflow (year-to-date flow of US$1.5bn) Short Bitcoin: US$0.9m out.
ETP volumes as a percentage of Bitcoin volumes of total space… pic.twitter.com/gMUPzTy0q4
— CoinShares (@CoinSharesCo) November 27, 2023
Crypto ETPs experience inflows when their shares trade above the value of their underlying assets, and when their shares trade below the value of their underlying assets. Because of this, the inflows are often seen as an indicator for the overall crypto market, while the outflows are often seen as a bearer.
Before September 25, crypto ETPs experienced outflows for several weeks, according to the report. But during the week of September 25-29, the sector began to experience a steady weekly flow. The admission rate has also increased over time. The week ending November 24 saw the highest revenue in a nine-week period.
Coinshares noted that Canadian and German ETPs accounted for the biggest gains for the week at 87 percent. US revenue is down $30 million.
Crypto funds collectively now have $45.4 billion in assets under management (AuM), the highest in 18 months.
In a previous report, CoinShares speculated that these recent earnings may be growing optimism that the US spot Bitcoin ETF will be approved. In the year On November 22, BlackRock met with the US Securities and Exchange Commission (SEC) to make progress toward this goal. Grayscale met with the SEC for similar reasons.
