- Digital asset funds saw record $326 million inflows last week, driven by optimism around potential SEC approval of a Bitcoin spot ETF.
- Bitcoin captured 90% of inflows at $296 million, though its price surge also led to some investor hedging. Other beneficiaries were Solana with $24 million inflows and Ethereum with $6 million outflows.
- Inflows were global but concentrated outside the US, with Canada, Germany, Switzerland, and Asia all seeing large inflows. Total assets under management hit $378 billion, the highest since May.
The crypto market is heating up again. Digital asset investment funds saw $326 million in net inflows last week, marking the largest single week of inflows since July 2022. This surge in investor interest is driven by optimism around a potential Bitcoin spot ETF approval by the SEC.
Bitcoin Dominates Inflows
Bitcoin captured 90% of total inflows at $296 million. However, its recent price surge also led to $15 million flowing into short-Bitcoin products, reflecting investor hedging strategies. Besides Bitcoin, Solana saw significant inflows of $24 million. Ethereum, on the other hand, experienced $6 million in outflows.
Investor Sentiment Improving in the US and Abroad
The US accounted for only 12% of inflows at $38 million as investors await a spot ETF. But other regions saw larger inflows, with Canada at $134 million, Germany $82 million, and Switzerland $50 million. Asia also saw a $28 million surge. Total assets under management now stand at $378 billion, the highest since May.
Bitcoin Price Rallies on ETF Speculation
The potential for SEC approval of a spot Bitcoin ETF has fueled Bitcoin’s price rally towards $35,000 this month. This renewed interest in crypto trading, with spot exchange volumes exceeding $24 billion on October 26.
The market appears optimistic that a Bitcoin spot ETF could arrive soon. This would be a milestone for the crypto industry and likely attract significant new investment. For now, inflows suggest investors are dipping their toes back into crypto as the market comes back to life.