Bitcoin spot ETF anticipation fuels largest crypto fund inflows for two years: CoinShares
Quick Take
- Digital asset investment products recorded the largest inflows since late 2021 last week, adding $346 million led by bitcoin and ether-based funds, according to CoinShares.
- Anticipation of a U.S.-based spot bitcoin ETF fueled the surge, CoinShares analyst James Butterfill said.
Crypto fund inflows at asset managers such as 21Shares, CoinShares, Bitwise, Grayscale and ProShares added $346 million last week, the largest jump since the bull market of late 2021, according to CoinShares’ latest report.
Last week's addition nearly doubled the $176 million registered in the prior week, compounding a nine-week consecutive run and bringing year-to-date inflows to over $1.5 billion.
The surge was fueled by anticipation of a U.S.-based spot bitcoin ETF, CoinShares Head of Research James Butterfill said, with the combination of price rises and inflows pushing total assets under management at the firms to over $45 billion — the highest in more than 18 months.
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investment products accounted for $312 million of the total inflows last week, while short-sellers "continue to capitulate," Butterfill added, with short bitcoin funds seeing a third week of outflows totaling just under $1 million and AUM falling over 60% since a peak in April.
ETPs now account for 18% of total spot bitcoin trading volume, well above average, highlighting their growing popularity among investors seeking exposure to digital assets, Butterfill noted.
Weekly crypto asset flows. Image: CoinShares.
Ether and altcoin funds add to inflows
Ether investment products added $34 million last week to a run totaling over $100 million. The four-week inflow streak has almost fully corrected outflows for the year, marking a decisive turn-around in sentiment, Butterfill said.
The sentiment was not limited to ether funds either, with other altcoin-based investment products like solana, polkadot and chainlink attracting inflows of $3.5 million, $0.8 million and $0.6 million, respectively.
Regionally, Canada and Germany again led the surge, accounting for 87% of the total inflows. The U.S. market witnessed a relatively modest $30 million worth of inflows last week, which Butterfill attributed to U.S. investors now waiting for a spot bitcoin ETF launch.
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