Cryptocurrency funds experience the largest weekly inflow in 2023 as Bitcoin shorts capitulate | CoinDesk JAPAN

• According to a report from CoinShares, crypto funds saw net inflows of $346 million last week, driven by expectations for Bitcoin spot ETFs.
• Bitcoin funds have seen more than $1.5 billion in inflows this year, as short sellers show signs of capitulating.
• Among altcoin funds, Ethereum and Solana had the highest inflows.

Cryptocurrency investment funds last week posted their biggest net inflows of the year, the strongest since the 2021 bull market, as expectations for Bitcoin spot exchange-traded funds (ETFs) continue to attract investors. kept moving. This was revealed in a report on the 27th by CoinShares, one of Europe’s largest asset management companies.

According to the report, there was a net inflow of $346 million (approximately 51.9 billion yen, exchanged at 150 yen to the dollar) for the week ending November 24, the largest amount of inflows in nine consecutive weeks of excess inflows. It became.

“This increase, spurred by expectations for physical ETF launches in the U.S., is the largest since the late 2021 bull market,” said James Butterfill, head of research at CoinShares. he pointed out.

Similar to last week’s trend, Bitcoin funds accounted for the majority with $312 million in inflows, bringing annual net inflows to over $1.5 billion.

Meanwhile, outflows from Bitcoin short funds aiming to profit from falling prices marked the third week in a row, a sign that “short sellers continue to yield,” the report said. Short funds’ assets under management are currently down 61% from their peak in April 2023.

Upturn in Ethereum funds

Funds holding Ethereum (ETH) saw $34 million in net inflows last week. This marks the fourth consecutive week of positive net inflows, with net inflows exceeding $100 million for the period. Ethereum funds have now largely recouped the massive outflows that followed earlier this year, indicating a “decisive turnaround in sentiment,” CoinShares noted.

The Solana (SOL) fund had the most inflows of any altcoin at $3.5 million.

Polkadot (DOT) and Chainlink (LINK) funds also recorded inflows of $800,000 and $600,000, respectively.

｜Translation and editing: Rinan Hayashi
｜Image: CoinShares
｜Original text: Crypto Funds Attract Largest Weekly Inflow in 2023 as Bitcoin ‘Short-Sellers Capitulate’: CoinShares