BTC, SOL Investment Products See Highest Inflows in October, Year-to-Date Flows Hit ATH

Digital asset investment products have seen 30% more inflows than in 2020
Multi-asset investment products saw outflows totaling a record US$23 million, in what is now a three-week run of outflows, said the CoinShares report

CoinShares released their weekly fund flows data for the week ending Friday, October 29. The report shows that 2021 has been a record year for digital asset investment products, which have seen a record $8.7 billion of inflows. 

The main catalyst for the record amount of inflows has been the approval of a BTC ETF in the United States. This is made very clear in the chart below under week number 43 when the ProShares ETF, BITO, began trading.

However, the US-based ETFs only saw $53 million of inflows this past week, representing just under 19% of product inflows. Canadian and European-based exchange trade products made up a bulk of the flows, according to CoinShares.

Bitcoin products saw the largest volume of inflows, with 93% of the $288 million being allocated towards the largest digital asset by market capitalization. 

Ethereum broke its three-week dry spell by recording $16.7 million of inflows. Ethereum based investment products have now seen $1.056 billion of inflows year-to-date. 

Despite having a market capitalization of $507 million versus BTC’s $1.1 trillion, year-to-date flows are just one-sixth that of BTC investment vehicles. This signals that institutional adoption of BTC is far greater than ether and that the second-largest digital asset could have more upside if that dynamic were to change. 

Digital asset investors are seen rotating out of products that provide exposure to numerous assets in a basket, implying that money managers are taking concentrated bets over a wide array of exposure. Multi-asset investment vehicles have seen month-to-date outflows of $37.1 million, according to the report. 

Solana (SOL) has caught the eye of institutional investors. It has seen the largest amount of inflows amongst altcoins, with $36.4 million over the past month. It has outpaced Ethereum based products as investors seeking larger returns look for higher alpha plays.  

The post BTC, SOL Investment Products See Highest Inflows in October, Year-to-Date Flows Hit ATH appeared first on Blockworks.

Comments (No)

Leave a Reply