- Exchange-traded products (ETPs) tied to crypto experienced their largest weekly inflow of investor capital in over 15 months.
- In the week ending October 27, crypto ETPs attracted $326 million.
- It is nearly a 5x increase from the previous week’s $66 million inflow.
Exchange-traded products (ETPs) tied to cryptocurrencies saw their biggest weekly inflow of investor capital in more than 15 months, according to a report published on October 30. The data signals a potential shift to more bullish sentiment among crypto investors.
Per the report from asset management platform CoinShares, crypto ETPs brought in $326 million for the week ending October 27. This marked a nearly 5-fold increase from the $66 million in inflows the prior week.
ETPs allow investors to gain exposure to the price movements of cryptocurrencies like Bitcoin and Ethereum without directly owning the assets. When an ETP’s shares rise faster than its target asset, the ETP must buy more of the asset, resulting in an “inflow.” This is generally seen as a bullish sign for the crypto market.
CoinShares noted it was only the 21st largest inflow
While the latest $326 million influx was sizable, CoinShares noted it was still only the 21st largest weekly inflow on record for crypto ETPs. The largest inflows last week went to Bitcoin ETPs, accounting for 90% of the total. ETPs tracking Solana’s SOL token also saw $24 million in new investment. However, Ether products experienced minor outflows totaling $6 million.
One potential catalyst according to CoinShares is “rising optimism from investors that the U.S. Securities and Exchange Commission is poised to approve a spot-based Bitcoin ETF in the U.S.”
Despite multiple applications, the SEC has yet to greenlight a Bitcoin ETP that provides direct exposure to the cryptocurrency rather than through futures contracts. Recent meetings between the SEC and ETP issuers like VanEck and Hashdex have fueled speculation that approval may finally be nearing.