Inflows into the crypto market have surged to a 15-month high, driven by the optimism surrounding the potential approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) in the United States. CoinShares’ latest weekly report reveals that crypto investment products saw an impressive inflow of $326 million, marking the largest weekly influx since July 2022.
This surge in investments represents the fifth consecutive week of positive momentum, pushing the month-to-date total to approximately $484 million. Consequently, it has pushed the overall assets under management in the crypto space to a staggering $37.8 billion, its highest point since May 2022.
Rising Optimism Surrounding a Spot-Based Bitcoin ETF
James Butterfill, senior analyst at CoinShares, attributes this sustained inflow to the increasing optimism among investors regarding the potential approval of a spot-based Bitcoin ETF by the US Securities and Exchange Commission (SEC). Butterfill states that a spot-based ETF is highly likely to be approved in the coming months, signifying a significant regulatory development for the crypto industry.
Bitcoin remains the primary beneficiary of this influx, securing an impressive $296 million in investments, constituting around 90% of the total investment for the past week. In contrast, Ethereum faces its third consecutive week of capital outflows, with an outflow amounting to $6 million, bringing its year-to-date flow to -$125 million.
Global Investment Trends
While the United States contributed only $38 million to the overall outflow, countries like Canada, Germany, and Switzerland experienced substantial inflows of $134 million, $82 million, and $50 million, respectively. Additionally, Asia marked its largest weekly influx with $28 million in investments.
As the crypto market continues to evolve and mature, the spotlight remains on Bitcoin as the leading cryptocurrency, with its positive performance drawing significant investment interest and positioning it as a frontrunner in the crypto asset space.