Crypto funds at asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares recorded record inflows totaling $2.45 billion globally last week, according to the latest CoinShares report.
Dominated by new US Bitcoin ETFs, annual inflows into digital asset investment products have so far reached $5.2 billion.
Combined with recent price increases, assets under management at cryptocurrency investment firms now stand at $67 billion — the highest level since December 2021 amid the peak of the recent bull market — wrote James Butterville, head of CoinShares research.
Weekly crypto asset flows. Images: Currency stocks.
According to The Block's dashboard, Bitcoin is currently trading at $52,188 – up roughly 25% year-to-date.
BTC/USD price chart. Image: Cluster/TradingView.
Accelerating inflows indicate growing interest in spot Bitcoin ETFs in the US
The United States continued its regional dominance, accounting for 99% of weekly flows, with a total value of $2.4 billion. Funds based in Switzerland and Germany recorded modest inflows of $16.7 million and $13.3 million, respectively, while Sweden saw the largest regional outflows of $26.3 million.
The significant acceleration in net inflows, coupled with a decline in outflows from existing companies like Grayscale's Converted GBTC Fund, indicates increased interest in new spot bitcoin ETFs in the US, according to Butterfill.
Unsurprisingly, Bitcoin investment products also dominated, once again accounting for 99% of inflows last week. However, some investors increased their short positions, with $5.8 million worth of inflows added to short Bitcoin products.
Ethereum led the way in terms of altcoin-based funds, seeing inflows of $21.1 million. Avalanche funds saw inflows of $1 million, and Chainlink and Polygon products added $900,000 – continuing their steady weekly inflow streak.
However, Solana's investment products did not fare as well, recording $1.6 million in outflows as sentiment slowed in the network's recent downtime, Butterville said.
Butterville added that blockchain stock ETF investors also received dividends last week, leading to outflows totaling $167 million.
Disclaimer: The Block is an independent media outlet that provides news, research and data. As of November 2023, Foresight Ventures is the majority investor in The Block. Foresight Ventures is investing in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is a core program of Foresight Ventures. The Block continues to work independently to provide objective, influential and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
