Renewed Demand Sees $350 Million Flow Into Crypto Funds, But US Trails Behind

Recent Ethereum inflows have almost cancelled out the outflows from earlier this year.

The US accounts for less than 10% of inflows.

Changing sentiment in the crypto markets has seen vast net inflows into digital asset investment funds. Alternative asset manager CoinShares reports that last week saw over a third of a billion dollars added to crypto funds, as optimism increases among institutional and high net worth investors that a spot BTC ETF will be approved.

This has been a huge week in a big year, which has seen $1.5 billion total inflows so far.

US: Late To The Party

Digital asset funds such as ETPs have now seen nine consecutive weeks of inflows, the largest run since the bull market of late 2021, according to James Butterfill, CoinShares' head of research. Needless to say, the last week's influx was driven by optimism of a spot BTC ETF launch in the US.

Bitcoin accounts for the majority of the funds invested, comprising $312 million out of the total $346 million (over 90%).

One of CoinShares' more interesting insights is the geographical distribution of the source of these hundreds of millions of dollars.

Screenshot of inflows by geographical origin.
The US accounts for less that 9% of all inflows.

Almost three-fifths of the money comes from Canada, and nearly 30% from Germany. The US accounts for less than 9%.

This highlights both the appetite for digital assets, and the relative difficulty or reluctance experienced by US investors to access these products. Greater regulatory clarity opens the doors to money that currently has limited options to gain exposure to bitcoin and other cryptos.

Increasing Activity

This encouraging trend follows recent news from Deribit, the largest crypto futures and options exchange, that Open Interest had hit an all-time high of $15 billion.

Bitcoin Options Open Interest Hits All-Time High
Traders are betting in record numbers that BTC will rise in price by the end of the year.

While the limelight has been on bitcoin, ETH has seen a turnaround in fortunes in recent weeks. Inflows have increased, almost cancelling out earlier outflows when the outlook was more bearish.


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