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 BTC +2.56% .

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 SOL +7.97% investment products added a further $3.7 million to the $24 million registered in the prior week. XRP +3.94% 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.


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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 LINK +7.47% , Litecoin LTC +4.44% and Tezos XTZ +3.46% 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.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

James Hunt is a reporter at The Block, based in the UK. As the writer behind The Daily newsletter, James also keeps you up to speed on the latest crypto news every weekday. Prior to joining The Block in 2022, James spent four years as a freelance writer in the industry, contributing to both publications and crypto project content. James’ coverage spans everything from Bitcoin and Ethereum to Layer 2 scaling solutions, avant-garde DeFi protocols, evolving DAO governance structures, trending NFTs and memecoins, regulatory landscapes, crypto company deals and the immersive metaverse. You can get in touch with James on Twitter or Telegram via @humanjets or email him at [email protected].


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