Crypto Fund Inflows Reach 10-Week Streak, Adding $176 Million
Crypto fund inflows at asset managers such as CoinShares, Bitwise, Grayscale, ProShares, and 21Shares added $176 million last week, reaching a 10-week streak of $1.76 billion, according to CoinShares’ latest report.
The run represents the largest since U.S. futures-based bitcoin ETF products launched in October 2021 and is equivalent to 4% of the current $46.2 billion worth of assets under management, CoinShares Head of Research James Butterfill said.
Trading volumes also remained high at $2.6 billion last week, representing 12% of total bitcoin volume, Butterfill added. However, although assets under management have risen over 100% for the year, they remain 47% below the all-time high of $86.6 billion in 2021.
Regionally, Canada, Germany, and the U.S. accounted for the most substantial inflows, adding $79 million, $57 million, and $54 million, respectively. Hong Kong was the main outlier, registering outflows of $15 million, with the Asia region as a whole one of the only to witness net outflows year-to-date despite the global upswing in digital asset investment products, Butterfill noted.
Bitcoin Dominance and Ether Turnaround as Prices Hit 18-Month High
Bitcoin-based funds dominated the inflows, adding $133 million to the $312 million inflows in the prior week. However, short bitcoin products registered minor inflows of $3.6 million last week, ending a three-week run of outflows.
Ether products registered a further $31 million of inflows, bringing its five-week streak to $134 million. Ether net flows are now positive for the first time in 2023 at $10 million after a long bout of relative negative sentiment, Butterfill said.
The flows come at a time when bitcoin and ether have reached their highest value in 18 months, fueled by continued optimism surrounding the potential launch of spot bitcoin ETFs in the U.S. over the coming months and, ultimately, an ether equivalent. BlackRock, Fidelity, and Grayscale are among the firms seeking approval from the Securities and Exchange Commission for both spot bitcoin and spot ether ETF applications.
Bitcoin is currently trading at $41,836, according to The Block’s price data — up over 150% year-to-date. The top cryptocurrency by market cap briefly broke above the $42,000 level earlier today for the first time since the Terra ecosystem collapse in May 2022.
Ether is currently trading at $2,241, lagging behind bitcoin throughout 2023 but still up over 85% year-to-date.
Blockchain Equities See Seven-Week Inflow Streak
Blockchain equities also added to a seven-week run of inflows, adding $17.4 million — the largest since July 2022.
Hot Take: Crypto Fund Inflows Continue to Surge Amid Bitcoin and Ether Rally
The latest report from CoinShares reveals that crypto fund inflows are on a 10-week streak, adding $176 million last week. This represents the largest run since the launch of U.S. futures-based bitcoin ETF products in October 2021. Despite remaining below the all-time high of $86.6 billion in 2021, assets under management have risen over 100% this year.
Bitcoin-based funds dominated the inflows, while ether products also saw significant inflows. Both cryptocurrencies have reached their highest value in 18 months, driven by optimism surrounding the potential launch of spot bitcoin ETFs in the U.S. and an ether equivalent. With continued inflows and a positive market sentiment, the crypto market shows resilience and potential for further growth.
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