According to CoinShares, exchange-traded products (ETPs) have seen inflows of $312 million in the week ending on November 24th, bringing the year-to-date inflows to approximately $1.5 billion. Weekly inflows for all types of cryptocurrencies reached a total of $346 million, continuing the trend of positive net inflows for nine weeks.
Cryptocurrency ETPs tend to experience inflows when their shares trade at a premium to the net asset value, while they see outflows when their shares trade at a discount to the underlying asset value. For this reason, inflows are often considered a bullish indicator for the overall cryptocurrency market, while outflows are seen as a bearish sign.
According to the report, cryptocurrency ETPs had experienced outflows for several weeks before September 25th. However, starting from the week of September 25th to September 29th, this sector began to see stable weekly inflows. The inflow amount has also been gradually increasing over time, with the week ending on November 24th witnessing the largest inflow in nine weeks.
CoinShares noted that Canada and Germany accounted for the majority of the inflows during the week, at 87%. Inflows from the United States decreased to $30 million.
Overall, cryptocurrency funds now manage assets worth $45.4 billion, the highest in 18 months.
In a previous report, CoinShares speculated that these recent inflows could be influenced by the growing optimism that the US Bitcoin spot ETFs will be approved. On November 22nd, BlackRock met with the US Securities and Exchange Commission (SEC) in an effort to make progress toward this goal. Grayscale has also met with the SEC for similar reasons.