Crypto products see higher inflows after spot ETF approvals

Even as the crypto market traded in a static manner in the last few days, crypto products still witnessed more inflows in the past week, signaling optimistic trading indicators.

BTC’s tight trading range led the crypto market to move stagnantly. Since the weekend, Bitcoin has traded above $42,000 but has faced resistance at the $43,000 mark. Moreover, other altcoins also saw stagnant movements, but a few, like ETH and Solana, rose minimally in the last 24 hours. On the bright side, a leading crypto asset manager revealed crypto products had seen higher inflows in the last week.

A report by the firm stated, “Digital asset investment products saw US$1.18bn inflows last week (subject to T+2 settlement), although this did not break the record set at the launch of the futures-based Bitcoin ETFs which totaled US$1.5bn back in October 2021.” Meanwhile, it also said ETP Trading volumes reached record highs at $17.5bn in the previous week. 

The billions of inflows could mark a major shift towards crypto investment products in the next few months. Meanwhile, the US saw the highest inflows in the period. At the same time, Europe and Canada saw outflows. It could mean traders could switch to US markets with the ETFs.

Thus, greater investors’ interest in crypto products could gradually result in more inflows in the crypto market. It could eventually help it rise further.

BTC/USD 1D price chart

Bitcoin is currently trading at around $42,600 on January 16, 2024, with BTC/USD trading lower by a margin of 0.1% in the last 24 hours. Bitcoin’s market cap was trading at around $834 billion.

BTC/USD is trading lower than its 20-day EMA (43,923.59), as BTC’s 24-hour volume was at around $20 billion. The crypto market cap increased by around 0.60%, trading above $1.69 trillion. BTC’s year-to-date returns are above 1.75%.

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