Institutions Expecting ETF Get Largest Capital Inflows Since 2021

It has been just revealed the fact that the institutions that are expecting the ETF are getting the largest capital inflows since 2021. Check out the latest reports about the matter below.

According to CoinShares, a digital assets manager, institutional crypto products have experienced the highest surge in inflows in two years.

CoinShares’ Digital Asset Fund Flows report reveals that institutional investors have been investing heavily in digital asset investment products for nine consecutive weeks.

“Digital asset investment products saw inflows totaling US $34 6million last week, the largest weekly inflows in this 9 consecutive week run.”

According to CoinShares, the recent surge in crypto inflows was likely driven by the anticipation of the launch of a spot-based exchange-traded fund (ETF), starting with Bitcoin (BTC). This is the largest run since the bull market in late 2021.

As usual, BTC received the largest share of inflows at $312 million. CoinShares reported that a high percentage of BTC trading volumes were exchange-traded products (ETPs), which represented 18% of total spot Bitcoin volumes last week.

This highlights the continued increased use of ETPs to gain exposure to the asset class. Altcoins also performed well last week, with Ethereum (ETH) receiving $34 million in inflows, while ETH-rival Solana (SOL) brought in $3.5 million.

Cardano (ADA), XRP, Polkadot (DOT), and Chainlink (LINK) saw $0.6 million, $0.2 million, $0.8 million, and $0.6 million in inflows respectively.

Not too long ago, we were revealing the fact that according to a research report by JPMorgan last week, the possibility of approving spot bitcoin exchange-traded-funds (ETF) has generated excitement, leading to a surge in digital assets over the past month. However, the bank believes that the rally may be overdone.

The bullish sentiment has been driven by two primary arguments.

“A spot bitcoin ETF approval would help crypto markets to attract fresh/new capital as the newly-approved ETFs see inflows,” and the “approval would cement a win for the crypto industry and a setback for the Securities and Exchange Commission (SEC) thus making it more likely that going forward the SEC approach towards the crypto industry will soften,” analysts led by Nikolaos Panigirtzoglou wrote.