Cryptocurrency-backed index products (ETPs) attracted significant attention last week, recording an inflow of $864 million (approximately 1.2702 trillion Korean won). This is interpreted as a signal that institutional investors' interest is once again shifting towards digital assets.
According to a report released Monday by European digital asset management firm CoinShares, the United States accounted for the majority of the inflows, amounting to approximately $796 million (about 1.1704 trillion won). Germany followed with approximately $68.6 million (about 100.9 billion won), and Canada with approximately $26.8 million (about 39.4 billion won). These three countries combined account for approximately 98.6% of the total inflows this year.
In contrast, Swiss-listed cryptocurrency ETPs saw an outflow of approximately $41.4 million (about 60.9 billion Korean won). Nevertheless, the cumulative net inflow of Swiss ETPs since the beginning of the year remains at approximately $622.4 million (about 914.8 billion Korean won).
The continued inflow of Bitcoin (BTC) spot ETF expectations and institutional investors since the beginning of this year has significantly improved the overall liquidity of cryptocurrency-related financial products. Particularly in the United States, competition among major financial institutions for ETFs is intensifying, and this trend is likely to accelerate further as cryptocurrency regulation becomes clearer and the political climate changes.
In its report, CoinShares analyzed that the concentration of large-scale capital inflows in specific countries is "due to differences in regulatory environments and investment infrastructure." This also serves as an example of the "asymmetry" that still exists in the global market for digital asset adoption.
With President Trump continuing to make pro-cryptocurrency statements ahead of next year's US presidential election, the anticipated policy shift is also influencing investor sentiment to some extent.
🔎 Market Analysis
Cryptocurrency ETPs are experiencing a recovery in funding inflows, primarily driven by the United States, supporting the trend of institutional funds "returning." This also reaffirms the decisive influence of regulatory environments in different countries on funding inflows.
💡 Key Strategies
1. Attention should be paid to 'institutional investment hubs' centered in the United States, Germany, and Canada.
2. Capital outflows from some countries, such as Switzerland, suggest the possibility of portfolio rebalancing.
3. It reflects expectations of policy changes that might result from a possible return to office for President Trump.
📘 Terminology Explanation
- Cryptocurrency ETPs: Listed index products that invest in real-world crypto assets and are financial products traded like stocks.
- Net inflow: The amount of funds flowing in minus funds flowing out.
TP AI Precautions
This article uses a language model based on TokenPost.ai for article summarization. The main content of the text may be omitted or may not be factual.
