Report: Investors Cautiously Optimistic About Bitcoin ETF Despite Inflows

Digital asset investment products saw modest inflows for the 4th consecutive week, totaling $66 million according to the latest CoinShares report. Total assets under management (AuM) have increased to $33 billion, the highest since mid-August.

Keypoints

• Digital asset investment products saw inflows for the 4th consecutive week totaling $66 million. Total assets under management (AuM) have risen to $33 billion.
• The inflows are likely linked to excitement over a spot bitcoin ETF launch in the US, but are relatively low compared to June announcements, suggesting more caution from investors this time.
• Solana saw further inflows of $15.5 million last week, bringing year-to-date inflows to $74 million (47% of AuM) – making it the most popular altcoin so far this year.
• Bitcoin investment products saw 84% of the total inflows, pushing year-to-date inflows to $315 million.
• Concerns over Ethereum led to further outflows of $7.4 million, the only altcoin to see outflows last week.

While the fresh inflows are likely due to excitement about a potential spot bitcoin ETF approval in the US, the amounts pale in comparison to June when anticipation over BlackRock’s crypto involvement led to 4 weeks of inflows totaling $807 million.

“The lower inflows this time round, despite the positive news from the Grayscale vs SEC court ruling, suggest investors are adopting a more cautious approach even as bitcoin ETF anticipation builds,” said James Butterfill, CoinShares Research.

The report shows 84% of the latest inflows were into bitcoin investment products, pushing year-to-date inflows to $315 million. Earlier last week, price rises had enticed short-bitcoin positions of $23 million but most of these were pared back by the end of the week as short sellers grew less confident.

Solana was the outlier, seeing further inflows of $15.5 million last week and bringing its year-to-date total to $74 million. This represents 47% of Solana’s total AuM, making it the most popular altcoin of 2022 so far.

In contrast, continued concerns around Ethereum led to further outflows totaling $7.4 million, the only altcoin tracked by CoinShares to see outflows last week.

The report highlights a cautiously optimistic outlook among crypto investors who appear eager for a spot bitcoin ETF but remain unsure of the likelihood and timeline of approval. With inflows slowing compared to June, investors seem to be tempering their expectations this time around.