- The surge of cash into ETPs corresponds with a fresh push higher in prices for prominent tokens.
- A lot of banks and advisers have also initiated providing these ETPs as part of broader portfolios, which has aided in opening a new tap of capital.
As per the reports, global exchange-traded products associated with crypto dragged in around $2.2 billion in net inflows in the past week, a leap that signalled the strongest weekly shift since October last year.
Bitcoin-aimed funds accumulated the lion’s share, and Ether, along with some other altcoin products, also witnessed fresh capital enter. As per CoinShares, Bitcoin-associated products accounted for most of the inflows, and Ether-associated ETPs also got a handful of new capital.
A lot of investors viewed these products as a swifter way to have exposure to crypto without taking possession of the coins directly. The pattern highlights a surging comfort among big traders and funds with exchange-traded wrappers.
The surge of cash into ETPs corresponds with a fresh push higher in prices for prominent tokens. Traders who are always on the sidelines made purchases after the latest rallies, and funds that follow these assets listed higher trading volumes.
The surge in trade activity aided in pushing the headline inflow number even further. Some market overlookers reveal that the move seemed a cumulation by longer-term holders at the time when others alerted that part of the money could be short-term placing around events and news.
Offering the ETPs
For a lot of institutions, these products are closer than direct custody of crypto. Brokers as well as wealth managers can put them on client platforms, having the same tools they use for stocks and bonds.
A lot of banks and advisers have also initiated providing these ETPs as part of broader portfolios, which has aided in opening a new tap of capital. Bitcoin ETPs were the prominent beneficiaries, having the majority of the $2.2 billion.
Ether funds also witnessed healthy inflows, and a minimal number of altcoin products captivated fresh cash. The data reveals demand is not restricted to a sole corner of crypto anymore. Rather than this, investors are spreading bets over the prominent names at the time when some nice tokens get tested.
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