Spot LINK exchange-traded funds (ETFs) have now experienced 13 consecutive weeks of net inflows, which represents a period of demand since the product’s launch on the New York Stock Exchange (NYSE). The fact that there have been constant inflows of capital indicates increasing institutional and retail investment in the altcoin through regulated investment products.
Steady Weekly Inflows Since Launch
Data provided by market participants reveals that each week since the NYSE-listed LINK ETF launch in December has ended with positive net inflows. No weeks of net outflows have been recorded among the prominent spot the altcoins ETFs.
The inflows have continued for 13 weeks, indicating sustained investment in LINK-themed funds despite the market volatility.
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Cumulative Inflows Approach $90 Million
Based on the latest available data, the net inflows on a weekly basis have been ranging between $1 million and $4 million. The cumulative value of net inflows has reached around $87-88 million.
The total net assets of the products have reached around $77 million. The week of the launch has seen one of the highest figures of inflows, which has set the tone for the coming weeks.
Grayscale and Bitwise Products Show No Outflows
The positive trend is universal among the major issuers, including those that are linked to Grayscale’s LINK trust structure and Bitwise’s LINK ETF offering.
Market data shows that there has been no single week of net outflows among the spot and altcoins ETF products that have been launched. This is a clear indication that the altcoin ETFs are different from the rest of the digital asset funds that experience inflow and outflow cycles.
ETFs Accumulate Over 1% of Circulating Supply
Within a short period of being in operation, the altcoins ETFs have cumulatively managed to accumulate over 1.2% of the altcoin supply in circulation.
The major implications of this development include; a reduction in the liquid supply available for trading on exchanges, an increase in the long-term holding of the digital asset through institutional structures, and a potential effect on the dynamics of market liquidity.
Broader Institutional Access to LINK
The fact that spot ETFs are available means that investors can get exposure to the altcoin without having to hold the token themselves. This provides the following benefits:
- Access to a regulated market through traditional brokerage accounts
- Custodial management services, which are provided by the ETF companies
- Simplified tax reporting, which is easier compared to holding the token
The fact that there was a 13-week inflow streak indicates that this is attracting steady investor interest.
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