Crypto investment products are continuing to experience bullish attention as they record four weeks of consecutive inflows, according to a new report from asset management firm CoinShares.
It comes as the industry anticipates the potential approval of the BlackRock spot Bitcoin ($BTC) exchange-traded fund (ETF).
However, James Butterfill, head of research at CoinShares, warned: “While the most recent inflows are likely linked to excitement over a spot bitcoin ETF launch in the US, they are relatively low in comparison to June announcements, suggesting more caution from investors this time round.”
Crypto investment products experience boom in activity
The weekly fund flows report from CoinShares, released on October 23, found that $66m was invested into digital asset products for the week ending October 20. This recent activity has increased the total assets under management for these products to $33bn.
The data revealed that 84% of these inflows were directed toward Bitcoin investment products. Despite a brief increase in short-selling, the push back from bears at the end of the week was relatively minimal, pointing to a potential decrease in confidence among short sellers.
In contrast to BTC, Ethereum ($ETH) products did not receive the same excitement. ETH experienced outflows of $7.4m.
Meanwhile, Solana ($SOL) came out on top in the altcoin market. SOL products continued to attract investors, with inflows of $15.5m last week, pushing the year-to-date total to $74m or 47% of its total assets under management.
When looking at the location of crypto inflows, Europe came out on top. It saw a total of $57m invested into crypto products. Meanwhile, Canada had inflows of $18.1m. But the U.S. experienced $8.7m in outflows.
Despite these movements and a recent favorable court ruling involving Grayscale and the SEC, Butterfill notes that total crypto inflows are subdued compared to earlier in the year, suggesting a more cautious approach from investors at present.
Developments in Bitcoin spot ETFs
Bitcoin investment products are at the center of attention in the crypto community this week as BlackRock makes progress with its spot ETF.
Its iShares spot Bitcoin ETF recently secured a listing on the Depository Trust & Clearing Corporation (DTCC), which is a necessary step before launching on the NASDAQ stock exchange.
Experts have suggested that BlackRock might have already received approval from the SEC or is at least anticipating it soon.
A greenlight from the SEC could impact other Bitcoin spot ETFs waiting for approval, including proposals from high-profile firms such as ARK Investment, Fidelity, and Valkyrie.
Bitcoin price surges amid ETF speculations
Off the back of the BlackRock news, Bitcoin’s price rocketed to a near 18-month high. It soared past the $30,000 mark, climbing by over 13%.
At the time of writing, it was trading at £34,469, up by 13% in the past 24 hours and 22% in the previous seven days.
CoinShares has not yet reported what the implications of this bullish news and BTC price surge will have for the inflows of crypto investment products.
