Crypto asset inflows top $1B as Bitcoin ETF optimism grows

Inflows into crypto asset investment products have surpassed $1 billion this year due to the prevailing optimism surrounding the possible approval of a spot Bitcoin exchange-traded fund approval (ETF), according to CoinShares Senior Analyst James Butterfill.

Butterfill, citing data from CoinShares, revealed that crypto investment products attracted $226.4 million in inflows this week, sustaining the recent positive trend permeating the burgeoning industry. This elevates the month-to-date flow to $482.1 million, contributing to a robust year-to-date total of $1.074 billion.

Breaking down the inflows by assets, Bitcoin dominated with over $1 billion, followed by a noteworthy $119 million inflow for Solana. Short BTC products also experienced inflows totaling $59 million for the year.

In contrast, Ethereum and Tron-related investment products faced outflows of $77 million and $51 million, respectively.

Meanwhile, other digital assets such as Cardano, XRP, and Litecoin observed more modest inflows of $7 million, $12 million, and $4 million, respectively.

ProShares’ BITO emerges as beneficiary

As the overall inflow into crypto investment products surges, select BTC ETF products like ProShares’ Bitcoin Strategy ETF (BITO) have been identified as a beneficiary.

Bloomberg’s Eric Balchunas highlighted the investment product’s notable gains amid the positive buzz surrounding the potential launch of spot Bitcoin ETFs. However, he also emphasized that BITO will likely face significant challenges once these spot ETFs are approved.

BITO is the first U.S. BTC-linked ETF offering investors exposure to the top cryptocurrency via futures contracts. Unlike the highly anticipated spot ETFs, it does not invest directly in BTC.

Over the last 30 days, BITO’s assets have grown substantially, almost doubling through market appreciation and $240 million in inflows. Data from ETF.com shows that the total value of assets under its management currently sits at $1.07 billion.

Additionally, Balchunas pointed out that BITO is on track to set a new trading volume record this week, with approximately $2 billion traded.