Crypto-linked Investment Products See Second-Largest Inflow of 2024
Last week, crypto-linked investment products received a significant inflow of $708 million, with almost all of it coming from Bitcoin. The US market alone recorded $721 million in inflows, with new ETFs gathering $1.7 billion. According to CoinShares research, spot Bitcoin ETFs have consistently attracted an average of $1.9 billion in capital over the past month, totaling $7.7 billion since their approval.
Bitcoin ETFs Maintain Strong Inflows
Bitcoin ETFs have maintained an average inflow of $1.9 billion over the last four weeks and have reached a cumulative total of $7.7 billion since their introduction in January. However, established funds like Grayscale and ProShares saw withdrawals amounting to $6 billion. Fortunately, recent data shows a slowdown in these outflows.
Bitcoin Dominates Inflow Charts
Bitcoin accounted for $703 million, representing 99% of the total investment flow. Conversely, products betting against Bitcoin experienced a slight withdrawal of $5.3 million, indicating positive price trends for Bitcoin. Among other cryptocurrencies, Solana stood out with $13 million in inflows, surpassing Ethereum and Avalanche which faced withdrawals of $6.4 million and $1.3 million respectively.
Hot Take: Crypto-linked Investment Products Continue to Attract Massive Inflows
Despite some withdrawals from established funds, crypto-linked investment products are experiencing significant inflows, particularly in Bitcoin. The introduction of Bitcoin ETFs has led to consistent average inflows of $1.9 billion over the past month. This trend has resulted in a cumulative total of $7.7 billion invested in Bitcoin ETFs since their approval earlier this year. The dominance of Bitcoin in the inflow charts further highlights its popularity and investor confidence. With other cryptocurrencies like Solana also attracting substantial investments, the crypto market continues to thrive.
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