Crypto funds at asset managers like BlackRock, Fidelity, ProShares, and 21Shares have seen a surge in inflows, surpassing the yearly record for 2021. According to CoinShares, these funds have attracted over $12 billion worth of inflows globally in just three months of trading this year. The recent influx of $1.76 billion into global crypto exchange-traded funds (ETFs) and exchange-traded products (ETPs) broke the previous record, with significant contributions from new spot bitcoin ETFs in the United States.
James Butterfill, CoinShares Head of Research, noted that digital assets ETFs/ETPs have exceeded the entire inflow of 2021, reaching $12 billion year-to-date compared to $10.6 billion for the entire previous year.
Record Inflows and Trading Volume
Last week alone, global crypto investment products witnessed record inflows of nearly $2.7 billion, pushing the total for 2024 to $10.3 billion even before this week began. Additionally:
- The crypto funds achieved a new record trading volume of $43 billion last week, almost 50% higher than the previous peak set just a week earlier.
- Total assets under management at these funds have reached all-time highs, nearing $100 billion.
U.S. Dominates Crypto Investment Products
Notably, crypto investment products based on exchanges in the United States have dominated this weekโs inflows. Other countriesโ fund flows were effectively canceled out. Specifically:
- U.S. spot bitcoin ETFs accounted for over 88% or $1.55 billion of this weekโs inflows alone.
- BlackRockโs IBIT ETF, in particular, registered a daily inflow record of $849 million, contributing to the overall influx of funds.
Bitcoin Price Hits All-Time Highs
The bitcoin price reached new all-time highs, surging to a peak of $73,710 before experiencing a correction. This price increase aligns with recent price gains in the crypto market.
CoinShares recently completed its acquisition of Valkyrie Funds, which includes its BRRR spot bitcoin ETF. This move enables the European asset manager to expand into the U.S. market and further capitalize on the growing interest in crypto investment products.
Hot Take: Crypto Funds Continue to Attract Record Inflows
The crypto industry has witnessed a remarkable surge in inflows into crypto funds, reaching a record-breaking $12 billion in just three months. This trend highlights the growing demand for digital assets and the increasing acceptance of cryptocurrencies as an investment option. As major asset managers like BlackRock and Fidelity continue to embrace crypto, it further solidifies the legitimacy and mainstream adoption of these assets.
Furthermore, the dominance of U.S.-based exchanges in attracting inflows demonstrates Americaโs position as a key player in the global crypto market. The success of spot bitcoin ETFs in generating substantial inflows also indicates investorsโ confidence and interest in gaining exposure to bitcoin through regulated investment vehicles.
With total assets under management nearing $100 billion and trading volumes hitting record highs, it is evident that cryptocurrencies have become an integral part of the financial landscape. As more institutional players enter the space and regulatory frameworks continue to evolve, we can expect the growth of crypto funds and investment products to persist.
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