Cryptocurrency investment products have seen record annual inflows of $13.8 billion.
Cryptocurrency funds from asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares recorded additional inflows worth $646 million globally last week, according to CoinShares’ latest report.
Following net inflows of $862 million the previous week, year-to-date inflows have reached a record $13.8 billion, well above the previous annual record of $10.6 billion in 2021, just months into 2024.
This marks a continued rebound for global cryptocurrency funds after seeing outflows worth around $1 billion during the week ended March 22. But there are also signs that the exchange-traded fund hype is easing, writes James Butterfill, head of research at CoinShares.
“There are signs that ETF investor appetite has eased and is not achieving the weekly flow levels seen in early March, while volume last week was down to $17.4 billion compared to $43 billion in the first week of March,” Butterfill said.
Weekly cryptocurrency asset flows. Image: CoinShares.
Bitcoin remains the focus
Global Bitcoin investment products remain in focus, adding $663 million last week, with short-term Bitcoin funds also recording outflows totaling $9.5 million for the third week in a row. This “suggests a minor capitulation among bearish investors,” Butterfill added.
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ETFs continue to dominate, accounting for $484.5 million of net inflows last week, according to The Block’s. Data dashboard.
Bitcoin was trading at $72,129, up 4% over the past week, according to The Block’s pricing page. Meanwhile, the GMCI 30 index, which represents the top 30 cryptocurrencies by market capitalization, rose 8% during the period, reaching 154.27.
Litecoin, Solana, and Filecoin investment products also recorded inflows of $4.4 million, $4 million, and $1.4 million, respectively, last week. However, the Ethereum-based fund continued to buck the trend and experienced four consecutive weeks of outflows, losing $22.5 million.
Butterfill said sentiment was polarized regionally, with U.S.-based funds adding $648 million last week and increased inflows into Brazil, Hong Kong and Germany-based products. However, Switzerland and Canada recorded outflows worth $27 million and $7.3 million respectively.
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