Crypto investment products hit $46B AUM maintaining record 10 week inflow streak

The total value of assets under management for crypto-related investment products surged 107% to $46.2 billion on the heels of the tenth consecutive week of inflows recorded by these products.

Per CoinShares’ weekly report, crypto products recorded a robust inflow of $176 million during the past week, bringing its total for the 10-week influx to an impressive $1.76 billion. The asset manager noted this sustained influx is the most substantial since Oct.2021, coinciding with the launch of a futures-based ETF in the United States.

Notably, these inflows have amplified Exchange Traded Products (ETP) trading volumes to around $2.6 billion, constituting 12% of Bitcoin’s (BTC) overall trading volumes.

The run of inflows can be attributed to the market optimism surrounding the potential approval of a spot Bitcoin ETF in the U.S. During the past months, several established financial institutions, including BlackRock, applied for a spot Bitcoin ETF with the Securities and Exchange Commission (SEC).

This unfolding scenario and the SEC’s active interactions with the applicants have heightened market anticipation about a possible approval for the numerous applications.

Bitcoin dominates inflows

Bitcoin remains a major beneficiary of the interest in the market, recording a substantial inflow of $133 million last week. Short-Bitcoin products reversed their three-week outflow trend to register a $3.6 million influx.

The inflow into short BTC products could be linked to the recent bullish performance of the top cryptocurrency, breaking the $41,000 barrier earlier today, Dec. 4, amid a persisting strong market performance.

Similarly, Ethereum (ETH) observed a notable inflow of $31 million last week, marking a five-week streak of $134 million. Consequently, Ethereum has reversed its prolonged negative sentiment, achieving a net inflow of $10 million for the year.

In contrast to the positive trends, Litecoin (LTC) stood as the only asset to experience an outflow last week, tallying around $0.2 million in negative movement amidst the overall surge in digital asset investments.

Across regions, last week’s influx was primarily fueled by investors from Canada, Germany, and the U.S., contributing $79 million, $57 million, and $54 million, respectively.

Conversely, investors from Hong Kong caused a $15 million outflow from the market. While the Asian market remains relatively small, it is the only region witnessing a year-to-date net outflow.