Report: Investors Cautiously Optimistic About Bitcoin ETF Despite Inflows

Digital asset investment products saw modest inflows for the 4th consecutive week, totaling $66 million according to the latest CoinShares report. Total assets under management (AuM) have increased to $33 billion, the highest since mid-August.


Keypoints

  • Digital asset investment products saw inflows for the 4th consecutive week totaling $66 million. Total assets under management (AuM) have risen to $33 billion.
  • The inflows are likely linked to excitement over a spot bitcoin ETF launch in the US, but are relatively low compared to June announcements, suggesting more caution from investors this time.
  • Solana saw further inflows of $15.5 million last week, bringing year-to-date inflows to $74 million (47% of AuM) – making it the most popular altcoin so far this year.
  • Bitcoin investment products saw 84% of the total inflows, pushing year-to-date inflows to $315 million.
  • Concerns over Ethereum led to further outflows of $7.4 million, the only altcoin to see outflows last week.

While the fresh inflows are likely due to excitement about a potential spot bitcoin ETF approval in the US, the amounts pale in comparison to June when anticipation over BlackRock’s crypto involvement led to 4 weeks of inflows totaling $807 million.

“The lower inflows this time round, despite the positive news from the Grayscale vs SEC court ruling, suggest investors are adopting a more cautious approach even as bitcoin ETF anticipation builds,” said James Butterfill, CoinShares Research.

The report shows 84% of the latest inflows were into bitcoin investment products, pushing year-to-date inflows to $315 million. Earlier last week, price rises had enticed short-bitcoin positions of $23 million but most of these were pared back by the end of the week as short sellers grew less confident.

Solana was the outlier, seeing further inflows of $15.5 million last week and bringing its year-to-date total to $74 million. This represents 47% of Solana’s total AuM, making it the most popular altcoin of 2022 so far.

In contrast, continued concerns around Ethereum led to further outflows totaling $7.4 million, the only altcoin tracked by CoinShares to see outflows last week.

The report highlights a cautiously optimistic outlook among crypto investors who appear eager for a spot bitcoin ETF but remain unsure of the likelihood and timeline of approval. With inflows slowing compared to June, investors seem to be tempering their expectations this time around.

The post Report: Investors Cautiously Optimistic About Bitcoin ETF Despite Inflows appeared first on Blockonomi.

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