According to a new report by CoinShares, a crypto asset management firm, crypto investment products have seen significant inflows for the second consecutive week, reaching the highest level since July 2023.
The post, published on Oct. 9, shows that crypto investment products attracted $78 million in inflows last week, indicating a growing demand for exposure to digital assets. The report also reveals that the volumes of crypto exchange-traded products (ETPs) increased by 37% last week, reaching $1.1 billion.
ETPs are securities that track the performance of an underlying asset or index, such as Bitcoin (BTC) or Ethereum (ETH). ETPs offer investors a convenient way to access the crypto market without having to hold or manage the actual coins.
Solana Reigned Supreme Among the Altcoins
Among the different crypto assets, Solana (SOL) stood out as the “altcoin of choice” for investors, as it recorded the highest inflows since March 2022. Solana is a blockchain platform that claims to offer high scalability, low fees, and fast transactions. Solana’s price has surged by more than 14% in the past 30 days, but it is still down by about 32% from its all-time high in September.
On the other hand, some major crypto investment products have seen less enthusiasm from investors. The report notes that the U.S. Ethereum futures exchange-traded funds (ETFs), which launched on Oct. 2, only attracted around $10 million in the first week of trading.
ETFs are similar to ETPs, but they are regulated by the Securities and Exchange Commission (SEC) and trade on major stock exchanges. The report suggests that the low inflows reflect a “tepid appetite” for Ethereum futures ETFs, which may face more competition and regulatory uncertainty than Bitcoin futures ETFs.
The document also highlights that 90% of all crypto asset inflows came from Europe, while the United States and Canada only witnessed $9 million of inflows combined. Germany and Switzerland were the biggest contributors to the inflow rise, accounting for 88% of all crypto asset products inflow last week.
The information attributes this trend to the “more progressive regulatory environment” in Europe, which has enabled more crypto ETPs to launch and trade on local exchanges.
The report concludes that the crypto market is showing signs of recovery after a period of volatility and consolidation in September. The report expects that more institutional investors will enter the crypto space as more regulated and diversified products become available.