Crypto funds recorded weekly inflows of $2.5 billion amid growing interest in spot Bitcoin ETFs.
Cryptocurrency funds from asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares saw record inflows last week, totaling $2.45 billion globally, according to a recent report from CoinShares.
New US branch takes control Bitcoin BTC
+0.72%
Annual inflows into digital asset investment products, based on exchange traded funds, currently amount to $5.2 billion.
With the recent price increase, assets under management for cryptocurrency investment firms now stand at $67 billion. This is the highest level since December 2021, at the peak of the last bull market, wrote James Butterfill, head of research at CoinShares.
Bitcoin is currently trading at $52,188, up nearly 25% year-to-date, according to The Block’s data dashboard.
Accelerating inflows indicate growing interest in US spot Bitcoin ETFs.
The United States continued its regional dominance, accounting for 99% of weekly inflows, or a total of $2.4 billion. Switzerland- and Germany-based funds saw modest inflows at $16.7 million and $13.3 million, respectively, while Sweden recorded the largest regional outflow at $26.3 million.
According to Butterfill, a significant acceleration in net inflows coupled with a decline in outflows from incumbents such as Grayscale’s converted GBTC fund indicates growing interest in new U.S. spot Bitcoin ETFs.
Not surprisingly, Bitcoin investment products were also dominant, accounting for 99% of last week’s inflows. However, some investors increased their short positions with $5.8 million worth of inflows added to short Bitcoin products.
Ether led the way in terms of altcoin-based funding, recording inflows of $21.1 million. The Avalanche fund saw inflows of $1 million, while Chainlink and Polygon products both added $900,000, continuing their ongoing weekly inflows.
But the Solana investment product hasn’t performed very well recently, with a $1.6 million outflow due to sentiment about reduced network downtime, Butterfill claims.
Blockchain stock ETF investors also made gains last week, with outflows totaling $167 million, Butterfill added.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.