Last week, the crypto market experienced a significant uptick in inflows, attracting a total of $78 million in investments. This marked a remarkable 3.7-fold increase compared to the previous week, during which only $21 million flowed into the market.
CoinShares, in its latest report, highlighted the resurgence in digital asset investment products, which recorded inflows for the second consecutive week, reaching a total of $78 million. Additionally, trading volumes for Exchange-Traded Products (ETPs) saw a notable 37% increase, reaching $1.13 billion for the week.
Despite the surge in crypto inflows, the launch of Ethereum Futures-based exchange-traded funds (ETFs) last week fell short of expectations, attracting less than $10 million in the first week, indicating a tepid response from investors.
This recent influx of capital into the crypto market over seven consecutive days, from September 30 to October 6, represents the most significant surge in inflows since July.
It’s worth noting that higher crypto inflows have been closely tied to the anticipation of Bitcoin ETF applications expected to be submitted throughout the year. For instance, the filing of BlackRock’s Bitcoin ETF on June 26 had a notable impact, driving crypto inflows to reach $199 million over a seven-day period.
On a different note, Solana, often referred to as the “altcoin of choice,” experienced a rapid increase in inflows, reaching its highest levels since March 2022. It recorded weekly inflows of $24 million, coinciding with Solana’s total value locked (TVL) hitting a 2023 all-time high of $338.82 million on October 2.
However, there is speculation within the crypto community regarding Solana, as the estate of the now-defunct crypto exchange FTX has received approval to liquidate its crypto holdings, which amount to approximately $1.2 billion worth of SOL.
As of the latest data, SOL is priced at $22.15.
Interestingly, CoinShares reported net positive inflows in the crypto market for the first time in six weeks just last week, with inflows totaling $21 million. In the previous week, there were outflows amounting to $9 million.
According to CoinShares’ data, European investors contributed $16 million in inflows for the week ending September 22, while US investors withdrew $14 million during the same period.