According to the latest report from CoinShares, United States-based crypto investment products have experienced a significant increase in inflows, following the recent approval of spot Bitcoin ETFs. CoinShares head of research, James Butterfill, highlighted that U.S. funds saw an astonishing $1.24 billion in inflows for the week ending January 12, while crypto products in Canada, Germany, and Sweden faced outflows.
The United States Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETF products on January 10, with 10 launching the next day. This move has significantly impacted trading volumes in crypto investment products, which reached a new weekly all-time high of $17.5 billion.
Butterfill noted that these trading volumes represented almost 90% of the daily trading volumes on trusted exchanges on January 12, a marked increase from the typical range of 2%-10%. The total weekly inflows hit $1.18 billion, with Bitcoin products recording the highest inflows at $1.16 billion, followed by nearly $25 million in Ether (ETH) funds. Bitcoin short funds also saw inflows of $4.1 million.
This influx of investment reflects a growing interest and confidence in cryptocurrency as an asset class. CoinShares' report suggests a shift in investor sentiment, with a preference for U.S.-based crypto products, particularly after the approval of the spot Bitcoin ETFs.
ProShares crypto-linked ETFs, including the asset manager's Bitcoin Strategy ETF (BITO), witnessed the largest weekly inflows at $265.2 million. Meanwhile, Grayscale Investments products experienced significant outflows totaling $579.1 million.
The approval of spot Bitcoin ETFs in the United States and the subsequent surge in trading volumes and inflows into U.S.-based crypto products indicate a milestone in the acceptance and integration of cryptocurrency in mainstream investment portfolios.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.