Inflows into crypto funds continue for the third week in a row

Inflows to crypto investment products from October 7 to October 13 totaled $15.2 million, versus $78.4 million a week earlier. Analysts at CoinShares said.

Trading volumes were 27% below the 2023 year-to-date average.

In Bitcoin funds there was an inflow of $16.4 million versus $42.7 million in the previous reporting period.

Into instruments that allow shorting the first cryptocurrency, investors allocated $1.7 million (a week earlier — $1.2 million).

Analysts noted that the data do not include positive for digital gold news about refusal of the SEC to appeal on the court’s ruling in the case of the conversion of the Grayscale Bitcoin Trust intoETF. Such developments increased the odds of launching the product, according to market observers.

Investors in Ethereum funds released $7.4 million. In the previous week, amid the start of trading of Ethereum-ETF, inflows of $10.2 million were recorded. Analysts suggested that the change in momentum could reflect ongoing protocol development issues.

Solana-based products attracted $3.7 million after a peak of $24 million in March 2022 in the previous reporting period. Inflows into XRP funds continued for a 25th week in a row ($0.42 million).

Investors withdrew $0.25 million, $0.28 million and $0.31 million from Tezos-, Litecoin- and Chainlink-based products, respectively.

On October 12, ARK Invest made changes to the joint filing with 21Shares for the registration of a spot Bitcoin ETF. Bloomberg analyst Eric Balchunas called it a ‘good signal’.

Earlier, former SEC lawyer John Reed Stark ruled out approval of a spot Bitcoin ETF. However Bernstein analysts Bernstein and former chair of the SEC Jay Clayton assessed the chances of a new wave of applicants as high.

Former BlackRock director Stephen Shonfield suggested that the agency would approve the instrument within three to six months.