Crypto Fund Inflows Surge to Over $1 Billion in 2022
Crypto fund inflows at asset managers such as CoinShares, 21Shares, Bitwise, Grayscale, and ProShares have surpassed $1 billion for the year, with an additional $293 million added in a seven-week run of inflows, according to CoinShares’ latest report.
Year-to-date inflows now stand at $1.14 billion, making it the third-highest yearly inflow on record. Total assets under management have increased by 9.6% over the last week and 99% since the beginning of the year, according to CoinShares’ Head of Research James Butterfill. The total assets under management amount to $44.3 billion, which is the highest since the major crypto fund failures in May 2022.
Bitcoin investment products led the surge with $240 million of inflows, while short Bitcoin products saw outflows of $7 million, indicating continued positive sentiment. Bitcoin ETPs made up nearly 20% of total bitcoin trading volume last week, suggesting increased participation from ETP investors compared to previous years.
BlackRock’s Ethereum Filings and Solana’s Significant Move
During a week where BlackRock filed to register an Ethereum Trust entity in Delaware and Nasdaq filed for BlackRock’s proposed spot ether ETF, ether-based products saw their largest inflows since August 2022, adding $49 million. This follows $17.5 million worth of inflows in the prior week, signaling a turnaround in sentiment.
Solana-based funds also witnessed significant inflows of $12.4 million in a week where the crypto asset rose over 40% to peak at around $62, according to The Block’s price data. Solana currently trades around $57. Bitcoin and ether gained approximately 4.5% and 7.6% over the last week and currently trade at $36,693 and $2,042, respectively.
Regional Trends and Blockchain Equity ETFs
Canada, the U.S., Germany, and Switzerland led the flows with contributions of $105.7 million, $81.1 million, $52.9 million, and $50.3 million, respectively. Additionally, blockchain equity ETFs saw their largest inflows since July 2022 amounting to $14 million and bringing net flows to a positive $11 million for the year.
Hot Take: Crypto Fund Inflows Continue to Soar
The surge in crypto fund inflows demonstrates sustained investor confidence and interest in digital assets such as Bitcoin and Ethereum. With record-breaking yearly inflows and significant movements in major cryptocurrencies like Solana, it’s clear that the crypto market remains dynamic and attractive for investors looking to diversify their portfolios.
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