Effects of Spot Bitcoin ETF Approvals on Institutional Investments: Current Report!

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• Butterfill added that these investment products saw an influx of $1.18 billion last week, subject to T+2 settlement.
• Bitcoin funds surprisingly dominated, recording an influx of $1.16 billion, constituting 98% of the total inflows.
• Valkyrie’s spot bitcoin ETF ranked third in terms of trading volume among the 11 spot bitcoin ETFs launched on Thursday.

How did the approval of Spot Bitcoin ETFs impact inflows into cryptocurrency investment products last week? The record remains unbroken…

New Weekly Investment Report from CoinShares

According to the latest report from CoinShares, cryptocurrency investment products from asset managers such as Bitwise, Grayscale, and 21Shares experienced a record trading volume of $17.5 billion last week following the commencement of trading for spot bitcoin ETFs in the United States.

James Butterfill, Head of Research at CoinShares, wrote, “These trading volumes represented nearly 90% of the daily trading volume on reputable exchanges last Friday; this is an unusually high ratio as it typically ranges between 2% and 10%.”

Butterfill added that these investment products saw an influx of $1.18 billion last week, subject to T+2 settlement. T+2 settlement refers to a process where the fulfillment of a securities transaction occurs two business days after the date of the trade. However, these inflows fell slightly below the record set in October 2021 when futures-based ETFs were launched, totaling $1.5 billion.

Bitcoin funds surprisingly dominated, recording an influx of $1.16 billion, constituting 98% of the total inflows; short bitcoin investment products saw small inflows of $4.1 million. Concerning other crypto assets, Ethereum-based products witnessed an influx of $25.7 million, and XRP funds recorded an influx of $2.2 million. Solana investment products only saw an influx of $0.5 million.

Regionally, as expected, U.S.-based funds dominated last week with an influx of $1.24 billion, while Europe generally recorded small outflows. Butterfill stated, “We believe the outflows seen in Europe and Canada (Canada $44 million, Germany $27 million, and Sweden $16 million) were due to traders who wanted to transition from Europe to the U.S.”

Blockchain stocks saw an influx of $98 million last week, adding to a seven-week streak, bringing the total to $608 million.

CoinShares Exercises Option to Acquire Valkyrie

Following the launch of the newly approved spot bitcoin ETFs, including the Valkyrie Bitcoin Fund (BRRR) on Thursday, CoinShares announced that it has exercised the option to acquire Valkyrie Funds.

Jean-Marie Mognetti, CEO of CoinShares, stated in a Friday announcement, “Exercising our option to acquire Valkyrie Funds aims to expand our success in Europe to the U.S. and provide American investors with unique access to regulated digital asset products. This expansion is a clear expression of our appetite for acquisitions to support our goal of becoming a global leader in the digital asset space.”

However, Valkyrie’s spot bitcoin ETF ranked third in terms of trading volume among the 11 spot bitcoin ETFs launched on Thursday. It saw a trading volume of approximately $9 million throughout the day, compared to $1 billion for BlackRock’s ETF and $2.27 billion for Grayscale’s converted fund.