Record Weekly Inflow in Crypto Funds in 2023: Bitcoin Short-Sellers Surrender

• Bitcoin ETF Anticipation Fuels $346 Million Inflows into Digital Asset Funds
• Bitcoin Dominates Fund Inflows
• Reversal of Fortune for Ether Funds
• Altcoin Funds Also Receive Inflows

Bitcoin ETF Anticipation Fuels $346 Million Inflows into Digital Asset Funds

Digital asset funds recorded net inflows of $346 million in the week ending November 24th, the highest this year. CoinShares attributes this to the continued excitement and anticipation surrounding a potential spot Bitcoin$42,260 -0.64% ETF. Bitcoin funds also experienced a significant increase, with inflows exceeding $1.5 billion within the year as signs of short-seller capitulation become evident.

Bitcoin Dominates Fund Inflows

The majority of the inflows went into Bitcoin funds, with an impressive $312 million similar to the trend observed in previous weeks. This surge has culminated in annual net inflows exceeding $1.5 billion. Meanwhile, as the report indicates, short Bitcoin funds, which thrive when prices decline, have recorded outflows for three weeks consecutively. This is interpreted as a sign of short-sellers capitulating. The assets managed by these funds have reduced by 61% from their all-time high in April 2023.

Reversal of Fortune for Ether Funds

Ether funds experienced an inflow of $34 million last week, marking the fourth straight week of positive trend. The total net inflows during this four-week phase have now exceeded $100 million. This positive streak effectively cancels out the earlier negative outflow trends witnessed by Ether funds earlier in the year. CoinShares interprets this as a decisive turnaround in sentiment towards the world's second-largest cryptocurrency.

Altcoin Funds Also Receive Inflows

The report also highlighted that Solana$104 5.03% funds attracted the most inflows among other altcoins with a $3.5 million influx. Other altcoins such as Polkadot$8.21 -2.51% and Chainlink$15.6 -4.61% weren't left out, as their respective investment products received inflows of $0.8 million and $0.6 million.

Edited by Jonathan Stoker