Following the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, investment products in the country have witnessed a surge in trader interest, dominating inflows over the past week, according to a recent report from CoinShares.
The report released on January 15 revealed that US-based funds attracted a substantial $1.24 billion in inflows for the week ending on January 12. In contrast, products in Canada, Germany, and Sweden experienced outflows, as basis traders shifted their focus from Europe to the US.
The Canadian market, in particular, saw the highest outflows among countries, totaling $44.2 million, while Swiss-based products received $24.2 million in inflows.
The spike in interest coincided with the United States Securities and Exchange Commission’s (SEC) approval of 11 spot Bitcoin ETF products on January 10, with 10 of them launching the following day.
CoinShares’ Head of Research, James Butterfill, highlighted that the introduction of spot Bitcoin ETFs contributed to a new weekly all-time high in trading volumes for crypto investment products, reaching $17.5 billion. This surge accounted for nearly 90% of daily trading volumes on reputable exchanges on January 12, a notably high figure compared to the typical range of 2%-10%.
Although the total weekly inflows reached $1.18 billion, Butterfill pointed out that it did not set a record, as the launch of Bitcoin futures ETFs in October 2021 attracted $1.5 billion in inflows during the first week. Bitcoin products led the inflows with $1.16 billion for the week, followed by Ether funds at nearly $25 million, while Bitcoin short funds recorded $4.1 million in inflows. XRP saw $2.2 million in inflows, but Solana funds were an exception with only $500,000 in inflows.
Among crypto-linked ETFs, ProShares, including the Bitcoin Strategy ETF (BITO), experienced the largest weekly inflows at $265.2 million. In contrast, Grayscale Investments products saw significant outflows, totaling $579.1 million.