Rising expectations that the U.S. will eventually launch a physical Bitcoin exchange-traded fund (ETF) has prompted a ninth consecutive week of inflows into digital asset investment products, the largest inflows since the cryptocurrency bull run in late 2021. These products, such as trusts and exchange-traded products, saw $346 million in inflows last week, with Canada and Germany contributing 87% of the total, according to CoinShares. CoinShares reported that only $30 million came from the United States, indicating that participation from American investors remains low.
Crypto markets have surged since early October as traditional asset managers like BlackRock prepare to launch spot Bitcoin ETFs, which could draw more investors into the market. Any ETF application must be approved by the U.S. Securities and Exchange Commission (SEC).
CoinShares reported: “The price increase coupled with capital inflows has now pushed total assets under management to $45.3 billion, the highest in more than a year and a half.”
Last week, inflows into Bitcoin products reached $312 million, pushing inflows this year to more than $1.5 billion. Ethereum products saw $34 million in inflows last week, nearly erasing outflows for all of 2023.