Crypto Fund Inflows Reach $43 Million, Continuing 11-Week Streak
Crypto fund inflows at asset managers like 21Shares, Bitwise, CoinShares, Grayscale, and ProShares added another $43 million last week. This marks an 11-week streak of $1.8 billion in total inflows, according to CoinShares’ latest report.
Bitcoin-based funds remained the primary focus, with $20 million worth of inflows last week and a total of $1.7 billion year-to-date. However, the total inflows represent a significant decline from the previous two weeks.
Ether investment products saw inflows of $10 million, contributing to a six-week streak that has recovered year-to-date outflows of $125 million to $19 million of inflows. Solana and Avalanche-based funds also remained popular among investors, with inflows of $3 million and $2 million, respectively.
Europe dominated regionally with inflows of $43 million, while the United States registered inflows of $14 million. However, half of the US inflows were directed toward short positions. Hong Kong witnessed a second week of outflows at $8 million, and Brazil saw outflows worth $4.6 million.
Short Bitcoin Positions Increase
There was a significant increase in short bitcoin position inflows, amounting to $8.6 million. This was due to recent price appreciation and perceived downside risks in the market.
Earlier today, there were liquidations of over $94 million in bitcoin positions on centralized exchanges. The majority of these liquidations were longs ($85 million). In total, there were $360 million in liquidations across various platforms as bitcoin fell by as much as 10% on some exchanges before rebounding.
Blockchain Equities See Record Inflows
Blockchain equities also experienced an eight-week streak of inflows, reaching their largest weekly inflows on record at $126 million.
Bitcoin mining firms Bitfarms and Core Scientific saw significant gains of 46.2% and 43.5%, respectively, while Argo Blockchain and Terawulf also posted notable increases. However, Cipher Mining and Hut 8 faced losses of 4.3% and 3.9%, respectively.
Coinbase and MicroStrategy stocks underperformed bitcoin, rising 1.5% and 5.1%, respectively, compared to bitcoin’s 6.6% gain. Bitcoin mining hardware manufacturer Canaan had a tough week, sliding 19%, along with Galaxy and Bakkt as some of the only crypto-related stocks to lose value.
Hot Take: Crypto Fund Inflows Remain Strong Despite Decline
The latest report from CoinShares shows that crypto fund inflows continue to be strong, reaching $43 million last week. While this represents a decline from previous weeks, it is still part of an 11-week streak of consistent inflows totaling $1.8 billion.
Bitcoin-based funds remain the main focus for investors, with significant inflows adding to its already impressive year-to-date total. Ether investment products have also seen a turnaround, recovering from year-to-date outflows to attract $10 million in inflows.
Overall, the crypto market remains resilient despite recent price volatility and perceived downside risks. Investors continue to show interest in blockchain equities, with record inflows reported last week.
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