Crypto Fund Inflows Surge to $346 Million
Crypto fund inflows at asset managers such as 21Shares, CoinShares, Bitwise, Grayscale, and ProShares experienced a significant jump last week, adding $346 million. This is the largest increase since the bull market of late 2021, according to CoinShares’ latest report. The previous week had seen inflows of $176 million, making it almost double the amount. This nine-week consecutive run has brought year-to-date inflows to over $1.5 billion.
Bitcoin ETF Anticipation Drives Surge
The surge in crypto fund inflows was primarily fueled by anticipation of a U.S.-based spot bitcoin ETF. CoinShares Head of Research James Butterfill stated that the combination of price rises and increased inflows has pushed the total assets under management at these firms to over $45 billion. This is the highest level in more than 18 months.
Bitcoin Investment Products and Short Bitcoin Funds
Last week, bitcoin investment products accounted for $312 million of the total inflows. Additionally, short bitcoin funds experienced a third week of outflows, totaling just under $1 million. Since reaching a peak in April, their assets under management have fallen over 60%.
Growing Popularity of ETPs
Exchange-traded products (ETPs) now represent 18% of total spot bitcoin trading volume, indicating their increasing popularity among investors seeking exposure to digital assets.
Ether and Altcoin Funds See Inflows
Ether investment products added $34 million last week, marking a four-week inflow streak totaling over $100 million. This has almost fully corrected the outflows for the year, signaling a positive shift in sentiment. Other altcoin-based investment products like Solana, Polkadot, and Chainlink also attracted inflows of $3.5 million, $0.8 million, and $0.6 million, respectively.
Regional Inflows
Canada and Germany led the surge in crypto fund inflows, accounting for 87% of the total. The U.S. market saw relatively modest inflows of $30 million, which Butterfill attributed to U.S. investors waiting for a spot bitcoin ETF launch.
Hot Take: Crypto Fund Inflows Reach Highest Level in Over 18 Months
Crypto fund inflows surged to $346 million last week, marking the largest increase since late 2021. This surge was driven by anticipation of a U.S.-based spot bitcoin ETF and resulted in total assets under management at asset managers reaching over $45 billion — the highest level in more than 18 months. Bitcoin investment products accounted for a significant portion of the inflows, while short bitcoin funds experienced outflows for the third consecutive week. Additionally, ether and altcoin funds saw inflows, with Canada and Germany leading the way regionally. The growing popularity of exchange-traded products highlights investors’ increasing interest in digital assets.
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