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CoinShares Reports Increase Weekly Inflow for Crypto Funds

As per a CoinShares report, crypto exchange-traded products (ETPs) observed inflows of $326 million for the week concluding on October 27th.

Coinshares week infolow report

In an October 30 report by CoinShares, it was highlighted that crypto exchange-traded products (ETPs) witnessed their most substantial weekly inflow in over a year. Inflows for the week closing on October 27 amounted to $326 million, notably surpassing the previous week’s $66 million.

ETPs represent investment funds tracking the price of specific assets, often focusing on major cryptocurrencies like Bitcoin and Ether. Some investors prefer ETPs for crypto price exposure, allowing them to avoid direct asset holding by possessing shares in a standard brokerage account.

An “inflow” in an ETP occurs when the fund’s value increases faster than its underlying asset, leading to additional asset purchases, usually perceived as a bullish signal. Conversely, an “outflow” happens when the fund must sell the asset due to declining note or share values, typically considered bearish.

CoinShares’ report unveils that the weekly inflow for the week concluding on October 27 reached $326 million, marking the highest since July 2022, over 15 months ago, and representing the fifth consecutive week of ETP inflows.

Weekly Crypto Assest Flows chart

CoinShares suggests that the recent surge in inflows might be attributed to growing investor optimism about the potential approval of a spot-based Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). Such approval could lead to increased investments in U.S.-based funds after the ETF’s acceptance.

However, despite the substantial increase in inflows, it’s worth noting that this week’s influx ranks only as the 21st largest on record, according to CoinShares. The majority of these funds flowed into Bitcoin ETPs, accounting for 90% of the total. Solana’s SOL also benefited from the overall positive market sentiment, attracting $24 million in inflows. In contrast, Ether funds experienced outflows amounting to $6 million.

It’s important to note that despite multiple applications submitted over the years, the SEC has not yet approved a spot Bitcoin ETP. VanEck adjusted its application on October 19, likely to address the agency’s concerns, while Hashdex engaged in discussions with the SEC on October 25 in an attempt to secure approval for their spot Bitcoin ETP.

We covered an article on Hashdex here.

Additionally, we featured an article on VanEck here.

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