Crypto funds recorded net inflows for third consecutive week led by Bitcoin
Quick Take
- Digital asset investment products recorded net inflows for the third consecutive week, adding $15 million — dominated by Bitcoin.
- Bitcoin products saw inflows of $16 million last week, pushing the year-to-date inflows to $260 million.
Digital asset investment products at asset managers such as CoinShares, Bitwise, Grayscale, ProShares and 21Shares recorded net inflows for the third consecutive week. The funds added a net $15 million — dominated by Bitcoin.
Bitcoin products saw inflows of $16 million last week, pushing the year-to-date inflows to $260 million, according to CoinShares’ latest report. Short-Bitcoin funds also observed inflows of $1.7 million.
The data, as of Friday’s close, is “unlikely to capture the positive news out of the U.S. regarding the SEC not appealing the Grayscale legal challenge, potentially paving the way for a spot-based ETF in the U.S.,” Head of Research at CoinShares James Butterfill wrote.
Solana and XRP products see inflows
Solana investment products added a further $3.7 million to the $24 million registered in the prior week. XRP funds also managed modest inflows of $0.42 million — the 25th consecutive week of positive inflows for the product. “The consistent inflows underscore the investment community’s support, especially considering successful legal challenges against the SEC,” Butterfill said.
The overall net inflows are a sign of “sentiment steadily improving,” Butterfill added.
Weekly crypto asset flows. Image: CoinShares.
However, the flows weren’t all positive, with Ether funds witnessing outflows of $7.4 million — reversing most of the $10 million of inflows added following the launch of six Ether futures ETFs in the prior week. “This perhaps reflects ongoing protocol design concerns,” Butterfill said.
Chainlink, Litecoin and Tezos products followed, seeing $0.31 million, $0.28 million and $0.25 million in outflows last week, respectively.
Regional divide persists, trading volume still down
The U.S. market continued to witness minimal inflows into crypto funds, adding $2.1 million last week, whereas Germany was behind most of the week’s inflows, adding $16.1 million. Canada registered $3.5 million of inflows. Sweden was the only European country to report outflows — totaling $7.5 million.
Despite the consecutive net inflows, trading volume remains 27% below the average for 2023, Butterfill noted.
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