Crypto Funds Garner Record Inflows of $2.7 Billion in One Week
Crypto funds managed by BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares experienced a surge in inflows last week, reaching a record high of $2.7 billion worldwide, according to CoinShares’ latest report. This surpasses the previous peak of $2.45 billion set in February and was primarily driven by significant interest in U.S. spot bitcoin exchange-traded funds.
The strong inflows last week brought the year-to-date total to $10.3 billion, just shy of the $10.6 billion inflows for the entire year of 2021. Additionally, weekly trading volume reached a new high of $43 billion, nearly 50% higher than the previous peak set the week before. With recent price gains in the crypto market, total assets under management also hit a record high of $94.4 billion, rising 14% over the past week and 88% year-to-date.
Bitcoin Funds Continue to Dominate with U.S. Leading Regionally
In terms of regional distribution, U.S.-based funds maintained their dominance following the approval of spot bitcoin ETFs, attracting $2.8 billion worth of inflows last week. Switzerland-based investment products came second with $21 million in inflows, followed by Brazil-based funds with $18 million. However, crypto funds in Germany, Sweden, and Canada experienced outflows of $77 million, $39 million, and $35 million respectively.
Unsurprisingly, bitcoin investment products remained the primary focus and generated $2.6 billion worth of inflows last week. Despite the recent price action, short-bitcoin funds also saw inflows of $11 million.
BlackRock’s IBIT and Fidelity’s FBTC spot bitcoin ETFs achieved record daily inflows of $788 million and $73 million respectively. IBIT surpassed $10 billion in inflows after just two months of trading, while the newly launched nine spot bitcoin ETFs, excluding Grayscale’s converted GBTC fund, attracted over $20 billion in inflows, with net inflows totaling more than $9.5 billion.
Regarding altcoin-based products, Solana-based funds experienced inflows of $24 million for the week after three consecutive weeks of outflows. This was fueled by reports that Pantera Capital is raising funds to purchase Solana holdings from the FTX bankruptcy estate. On the other hand, Ether-based investment products saw outflows of $2.1 million, while Polkadot, Fantom, Chainlink, and Uniswap products witnessed minor inflows.
Hot Take: Record Inflows and Price Highs Reflect Growing Crypto Demand
Last week’s record-breaking inflows into crypto funds highlight the increasing demand for digital assets among investors. The surge in interest can be attributed to several factors:
- The approval and launch of spot bitcoin ETFs in the U.S., which attracted significant inflows and boosted overall market confidence.
- The price performance of bitcoin reaching new highs, surpassing the $72,000 mark for the first time in history.
- Investors’ growing awareness and understanding of cryptocurrencies as viable investment options.
This trend is expected to continue as more institutional investors and asset managers enter the crypto market. As regulatory frameworks become clearer and traditional financial institutions embrace digital assets, we can anticipate further growth in crypto fund inflows and total assets under management.
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