In recent days, cryptocurrency investment products have seen inflows again, despite the ongoing volatility in major digital assets.
Inflows into Crypto ETFs
Last week, cryptocurrency exchange-traded products (ETPs) recorded $1.03 billion in inflows. This brings the total year-to-date inflows for ETPs to nearly $19 billion, according to CoinShares’ head of research, James Butterfill.
Leaders in Inflows: Bitcoin and Ether
Bitcoin ETPs led the way with $790 million in inflows, accounting for 76% of total inflows for the week. However, Bitcoin inflows slowed compared to the previous three weeks, which averaged $1.5 billion weekly. Ether ETPs also showed momentum, attracting $225 million over 11 consecutive weeks of inflows.
Shift in Investor Sentiment
According to Butterfill, the moderation in inflows may indicate that investors are becoming more cautious as Bitcoin approaches all-time high price levels. Notably, on a proportional basis, weekly inflows during this run have averaged 1.6% of AUM for Ethereum, significantly higher than Bitcoin's 0.8%.
Despite volatility in the cryptocurrency market, inflows into crypto ETFs continue to grow, which may signal potential shifts in investor sentiment.
