Record Influx: Crypto Funds Surge with Weekly Highs in 2023 as Bitcoin Bears Surrender, States CoinShares Report

In a significant shift of market sentiment, Ether funds have demonstrated an impressive four-week streak of positive performance, accumulating inflows exceeding $100 million, according to the latest insights from CoinShares. This positive momentum in digital asset funds persisted as the market eagerly awaited the launch of a spot Bitcoin ETF, contributing to a substantial net influx of $346 million reported by CoinShares last week.

Bitcoin funds experienced robust inflows throughout the year, surpassing a notable milestone of $1.5 billion. This trend underscores a broader market sentiment marked by the capitulation of short-sellers. Notably, altcoins, specifically Ether and Solana, emerged as frontrunners in attracting fund inflows among digital assets. The most recent data from CoinShares, unveiled on Monday, showcased a remarkable surge in net inflows to crypto investment funds, marking the most significant influx in the current year and extending a streak that rivals the strength observed during the 2021 bull market.

For the week concluding on November 24, digital asset-focused investment vehicles attracted an impressive $346 million in net inflows, marking the ninth consecutive week of positive performance. James Butterfill, CoinShares' Head of Research, attributed this sustained surge to the widespread anticipation of a spot-based ETF launch in the United States, emphasizing its significance as the most substantial uptrend since the late-2021 bull market.

ETF Anticipation Fuelling the Largest Surge in Inflows Since Late 2021https://t.co/kadC8aRml5

— James Butterfill (@jbutterfill) November 27, 2023

Bitcoin funds maintained their dominance, attracting $312 million in inflows, aligning with the prevailing trend in recent weeks and bringing the total net inflows for the year to over $1.5 billion. Concurrently, funds designed to profit from declining prices, specifically short BTC funds, witnessed their third consecutive week of outflows, indicative of an ongoing trend of short-sellers capitulating. The report highlighted a noteworthy 61% decline in assets under management (AUM) of short funds from their peak in April 2023.

Ethereum (ETH) Fund Resurgence: A Remarkable Turnaround Unfolds

Ether funds displayed a positive trend with $34 million in net inflows last week, extending their favorable performance for four consecutive weeks and surpassing $100 million in net inflows during this period. This impressive turnaround in sentiment effectively nullified the earlier dismal outflows, signifying a notable shift in sentiment toward the second-largest cryptocurrency, as highlighted by CoinShares.

Among altcoins, Solana (SOL) funds attracted the most substantial inflows, totaling $3.5 million. Additionally, Polkadot (DOT) and Chainlink (LINK) investment products experienced positive traction, garnering inflows of $0.8 million and $0.6 million, respectively. The diversified influx into these altcoins further illustrates the dynamic nature of the crypto market and investors' increasing interest in alternative digital assets.

Read More: Bitcoin Holds Steady at Slightly Above $27,000 Prior to Federal Reserve Interest Rate Announcement