AlphaBriefing - Institutional Insights
US ETF Boom Drives ETH Investment Products to $2.2 Billion Annual Inflows
Ethereum-based investment products experienced significant growth last week, with global net inflows reaching $634 million, primarily driven by U.S. spot ETFs. This surge elevated Ethereum funds to a new annual record of $2.2 billion in net inflows, surpassing the previous peak of $2 billion set in 2021. In contrast, Bitcoin investment products faced outflows totaling $457 million during the same period, suggesting a reversal in bitcoin dominance trend as an indicator of 'alt season'. Meanwhile, XRP funds attracted a record $95 million in weekly inflows, coinciding with a 69% price increase over the past seven days, propelling XRP to become the third-largest cryptocurrency by market capitalization.
Markets Surge Amid Administrative Shifts, as Bitcoin Futures Open Interest Tops $60 Billion
Bitcoin futures open interest has skyrocketed following the U.S. presidential election on November 5, climbing from $39 billion to $60.9 billion. Analysts attribute this rise to “organic growth,” driven by expectations of future price appreciation, rather than speculative excess. This surge reflects heightened trading activity and leverage use, with analysts noting no imminent risk of a market correction despite bitcoin retesting the $93,000 price support floor earlier this week before breaking above the $100,000 milestone less than seven days later.
Bitcoin Exchange Reserves Hit Multi-Year Lows, Prompting Supply Crunch
Bitcoin exchange reserves have plummeted to approximately 2.46 million BTC, a significant drop from around 3.2 million BTC in October 2021. This reduction of over 700,000 BTC indicates a substantial shift toward long-term holding, as investors transfer assets from exchanges to cold storage. Supporting this trend, reports show that the illiquid supply—BTC held by entities with minimal spending history—has increased by 185,000 BTC in the past 30 days, reaching an all-time high of 14.8 million BTC, which constitutes 75% of the current circulating supply of about 19.79 million coins.
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