In recent months, the United States Securities and Exchange Commission (SEC) has postponed several applications for Spot Bitcoin Exchange-Traded Funds (ETF). Following these postponements, the recent data has gathered everyone’s attention as digital asset investment products massive inflow.
Positive momentum in digital asset investments
According to the recent report by Coinshare on November 20, 2023, digital asset investment products attracted a substantial total of $176 million in inflows, marking the eighth consecutive week of positive momentum. Year-to-date, these inflows have reached $1.32 billion. Although this trend is encouraging, it falls behind the significant figures seen in 2021 ($10.7 billion) and 2020 ($6.6 billion).
Additionally, Trading volumes in Exchange-Traded Products (ETPs) have been vital, averaging $3 billion per week, double the average for this year at $1.5 billion. Notably, ETPs now account for 11% of total crypto volumes, a substantial increase from the long-term historical average of 3.4%, and well above averages from the 2020/21 bull market.
Regionally, Canada, Germany, and Switzerland led the way with inflows of $98 million, $63 million, and $35 million, respectively. On the other hand, the U.S. witnessed outflows of $19 million from futures-based products.
Bitcoin dominance and positive sentiment
However, Bitcoin remains the dominant force, attracting $155 million in inflows. Over the past eight weeks, these inflows represent 3.4% of the total assets under management. Conversely, short positions on Bitcoin experienced outflows of $8.5 million last week. Analysts attribute this positive sentiment to the anticipated approval of a spot-based Bitcoin ETF in the U.S., with potential implications for Bitcoin’s price.
Several altcoins also saw increased interest, with Solana, Ethereum, and Avalanche receiving notable inflows of $13.6 million, $3.3 million, and $1.8 million, respectively. However, Uniswap and Polygon experienced minor outflows of $0.55 million and $0.86 million, respectively.
As the crypto market continues to evolve, these trends suggest growing confidence in digital asset investments, with investors diversifying beyond Bitcoin and exploring opportunities in alternative cryptocurrencies. The imminent approval of a spot-based Bitcoin ETF in the U.S. adds to the positive sentiment, hinting at potential further developments in the crypto space.