Crypto Funds Record Inflows For Third Consecutive Week As Bitcoin Dominates

Updated: 17 October 2023

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Crypto funds recorded a third consecutive week of net inflows with Bitcoin dominant amid rising investor sentiment toward the sector, CoinShares said.

Bitcoin was the standout performer, sucking in $16 million during the last week, elevating its year-to-date inflows to $260 million, CoinShares said.

It noted that the data was unlikely to have captured upbeat news on Friday that the Securities and Exchange Commission had not appealed a court verdict that favoured Grayscale Investments’ attempt to launch a spot Bitcoin exchange-traded fund (ETF).

Net Flows By Asset (Source: CoinShares)

Ethereum’s Dilemma

Solana investment products added $3.7 million to the $24 million registered in the prior week. On the flip side, Ethereum, has struggled to attract investor interest despite the launch of futures-based ETFs.

Ethereum funds experienced outflows amounting to $7.4 million, erasing most of the $10 million in inflows witnessed following the launch of six Ether futures ETFs the previous week, CoinShares said.

“This perhaps reflects ongoing protocol design concerns,” said head of research James Butterfill.

Altcoins Struggle

The past week has been challenging for altcoins, which recorded a combined outflow of $0.84 million. Tezos, Litecoin, and Chainlink witnessed outflows of $0.25 million, $0.28 million, and $0.31 million, respectively.

XRP managed to shine amid the turmoil with modest inflows of $0.42 million.

“This marks the 25th consecutive week of inflows into XRP this year,” Butterfill said. “The consistent inflows underscore the investment community’s support, especially considering successful legal challenges against the SEC.”

Regional Divide Persists

Net Flows By Country (Source: CoinShares)

Europe The Standout Performer

A closer look at these inflows reveals an interesting regional divide. While the United States experiences continued minimal inflows into digital asset investment products, Europe is a standout performer.

Last week, European markets welcomed a net inflow of $7 million, with Sweden the only country reporting outflows. Germany led the way, adding $16.1 million to the week’s net inflows.

Canada registered $3.5 million of inflows and the US $2.1 million.

Despite consecutive net weekly inflows, trading volumes remain 27% below the 2023 average, highlighting the cautious approach of investors in a volatile market, CoinShares said.