Crypto ETPs sees 9000 BTC inflow in January

According to data shared by Arcane Research’s Vetle Lunde, the Bitcoin (BTC) exchange-traded product (ETP) registered an inflow of 6,031 BTC over the past week.

Runde Said ETP recorded a cumulative net inflow of 9,131 BTC over the past month. This is the highest monthly inflow since May 2022, when the ETP recorded an inflow of 9,765 BTC.

Bitcoin ETP inflow
Source: Vetl Runde

An outflow of 20,124 BTC follows an inflow in June 2022 in May 2022, following a 40% decline in flagship digital assets to below $20,000. Since then, the Bitcoin ETF has been at a standstill, recording more outflows than inflows until January 2023.

On the other hand, there is a notable difference in the geographic composition of the ETFs with the most inflows this month compared to May 2022 when Canadian ETFs such as Purpose Bitcoin dominated.

However, current inflows appear to be evenly distributed between European, US and Canadian ETFs in January 2023.

Valkyrie ETF to rise 100% in 2023

The Valkyrie Bitcoin Miners ETF “We’re Gonna Make It” (WGMI) has emerged as the best performing fund in 2023, up more than 100% in the past month, according to Bloomberg. dataETFs launched in February 2022 have lost over 80% of their value in 2022.

The ETF holds shares in mining companies such as Hive Blockchain Technologies Ltd, Marathon Digital Holdings Inc. and Bitfarms Ltd. All of these miners saw their share prices rise significantly in 2023 after last year’s brutal share price decline.

Valkyrie Bitcoin ETF
Source: Bloomberg

But with most ETFs still trading below all-time highs, positive early returns aren’t enough to restore investor returns. For context, WGMI is down 68.32% from his February 2022 starting price.

Meanwhile, the strong performance of these ETFs is largely driven by the current market sentiment surrounding the crypto industry. The crypto industry is off to a roaring start to the new year, with Bitcoin and Ethereum (ETH) gaining more than 30% over the past month.

Leave a Reply

Your email address will not be published. Required fields are marked *