Fourth Consecutive Week of Inflows for Crypto Investment Products
Crypto investment products offered by various asset managers, including Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares, and 21Shares, have experienced their fourth consecutive week of inflows. According to CoinShares, these products added a total of $598 million globally last week. Year-to-date inflows have surpassed $5.7 billion, with spot Bitcoin exchange-traded funds (ETFs) in the United States leading the way. These ETFs account for over 50% of the record inflows seen in 2021.
Despite the positive inflow trend, total assets under management (AUM) in these funds remain more than 20% below the all-time high set in November 2021. CoinShares Head of Research James Butterfill notes that this mirrors Bitcoin’s price action during the same period.
Focus Remains on US and Spot Bitcoin ETFs
The majority of inflows were generated by U.S.-based funds, which added around $610 million overall. This is despite $436 million worth of outflows from Grayscale. Brazil and Switzerland also saw minor inflows of $8.2 million and $2.1 million respectively. On the other hand, the Canadian market experienced the largest outflows from digital asset investment products, losing $17.8 million.
Last week, Bitcoin-based funds received $570 million worth of inflows, driven by net flows from spot Bitcoin ETFs in the U.S., which amounted to over $588 million. Year-to-date inflows for Bitcoin-based funds now stand at $5.6 billion. Notably, spot Bitcoin ETFs alone have accumulated over $5.5 billion in net flows since their launch on January 11th.
However, there were also minor inflows into short-Bitcoin positions, totaling $3.9 million, due to recent price action.
Ether and Other Altcoins
Ether investment products saw $17 million worth of inflows last week, benefiting from its outperformance against Bitcoin. Over the past seven days, Ether has gained 5% and is currently trading at $3,050. Chainlink and XRP-based funds also received inflows of $1.8 million and $1.1 million respectively.
On the other hand, Solana investment products experienced outflows for the second consecutive week, totaling $3 million. This was likely influenced by the network’s recent temporary downtime and a 10% drop in Solana’s price to $101.
Blockchain Equities See Outflows
Blockchain equities continued to experience outflows, amounting to $81 million for the week. This suggests that equity investors are exercising caution in the current market.
Hot Take: Crypto Investment Products Continue to Attract Inflows
Crypto investment products have maintained their positive momentum with a fourth consecutive week of inflows. The popularity of spot Bitcoin ETFs in the United States has played a significant role in driving these inflows, accounting for over 50% of the record inflows seen this year. Despite this positive trend, total assets under management in these funds remain below their all-time high.
Altcoins like Ether have also seen increased interest from investors, with investment products receiving significant inflows. However, Solana’s recent network downtime has impacted sentiment and led to outflows from its investment products.
Overall, the consistent inflows into crypto investment products indicate a growing interest in cryptocurrencies as an asset class. As more institutional investors enter the market, it is likely that we will continue to see increased inflows and the development of new investment products.
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