Traders flock to US crypto products after spot ETF approvals — CoinShares

Source: Cointelegraph

United States-based crypto investment products have dominated inflows over the past week after the approval of spot Bitcoin BTC $42,803 exchange-traded funds (ETFs) in the country, according to the latest report from CoinShares. 

In a Jan. 15 Digital Asset Fund Flows report, CoinShares head of research James Butterfill noted that United States-based funds saw a whopping $1.24 billion of inflows from the week ended on Jan. 12, while Canada, Germany, and Sweden-based products experienced outflows due to “basis traders looking to switch from Europe to the US.”

Canadian products saw $44.2 million in outflows, the highest of any country, while Swiss-based products captured $24.2 million in inflows.

Crypto product fund flows by country. Source: CoinShares

On Jan. 10, the U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETF products, with 10 launching the next day. 

Butterfill highlighted that the launch of spot Bitcoin ETFs pushed trading volumes in crypto investment products to a new weekly all-time high, with $17.5 billion in volume. 

“These trading volumes represented almost 90% of daily trading volumes on trusted exchanges last Friday [Jan. 12], unusually high as they typically average between 2%-10%.”

Total weekly inflows hit $1.18 billion, though Butterfill noted it was “not a record,” with Bitcoin futures ETF launches in October 2021 bringing $1.5 billion of inflows in the first week.

Meanwhile, Bitcoin products had the highest inflows at $1.16 billion for the week, followed by Ether ETH $2,529 funds with nearly $25 million. Bitcoin short funds recorded $4.1 million in inflows.

Ripple’s XRP XRP $0.57 followed with $2.2 million, while Butterfull called Solana 

SOL$96 funds “the notable exception,” which saw just $500,000 of inflows.

ProShares crypto-linked ETFs, including the asset manager’s spot Bitcoin Strategy ETF, saw the largest weekly inflows at $265.2 million, while Grayscale Investments products saw $579.1 million in outflows.