Canada and Germany dominate crypto ETP inflows as record $346M added to funds

Last week saw a remarkable influx of capital into digital asset investment products, amounting to $346 million, according to CoinShares’ most recent data.

This figure represents the most significant weekly inflow in a consecutive nine-week run and marks a pivotal point last seen during the bull market enthusiasm of late 2021. According to the reported figures, the inflow spike has propelled the total assets under management (AuM) to a staggering $45.3 billion, the highest in over eighteen months.

Canada and Germany accounted for 87% of the total, with inflows of $199.1 million and $101.5 million, respectively. In contrast, the United States saw a relatively modest $30 million, presumably as investors hold out for a spot-based Exchange-Traded Fund (ETF) launch stateside.

However, the U.S. still has a far higher amount of assets under management, with $33.1 billion, over ten times more than the next highest country.

Bitcoin and Ethereum Lead the Charge

Bitcoin attracted $311.5 million in inflows last week, culminating in year-to-date inflows surpassing $1.5 billion. This robust accumulation comes when short-sellers appear to retreat, as evidenced by the third consecutive week of outflows at $900,000 from short-Bitcoin ETPs.

Ethereum followed suit with $33.5 million in inflows, contributing to a four-week total of $103 million. This trend nearly neutralizes the year’s prior outflows and signifies a decisive shift in investor sentiment for the second-largest digital asset by market capitalization.

Implications for the Crypto Market

The infusion of capital into other cryptocurrencies like Solana, Polkadot, and Chainlink, although modest in comparison, indicates a diversified investment interest within the sector. The sustained use of Exchange-Traded Products (ETPs) further highlights an increased preference for regulated financial instruments to gain crypto exposure, with ETPs accounting for 18% of total spot Bitcoin volumes last week.

This financial movement aligns with…