Crypto fund inflows hit $43 million, marking 11-week streak totaling $1.8 billion

Crypto fund inflows at asset managers such as 21Shares, Bitwise, CoinShares, Grayscale and ProShares added another $43 million last week, marking an 11-week streak of $1.8 billion, according to CoinShares’ latest report.

Bitcoin BTC +7.59% -based funds remained the primary focus, with $20 million worth of inflows last week adding to its $1.7 billion year-to-date. 

However, the total inflows represent a substantial decline from the $176 million and $346 million witnessed during the two prior weeks, respectively.

Ether investment products continued their turnaround, witnessing inflows of $10 million and adding to a six-week streak that has seen year-to-date outflows of $125 million recover to $19 million of inflows.

Solana and avalanche-based funds also remained “firm favorites” among investors, Butterfill said, adding inflows of $3 million and $2 million, respectively.

Regionally, Europe dominated, reporting inflows of $43 million. The United States registered inflows of $14 million, but half were directed toward short positions. Hong Kong was again the principal outlier, witnessing a second week of outflows at $8 million. Brazil also saw $4.6 million worth of outflows.

Weekly crypto asset flows. Image: CoinShares

Short bitcoin positions ramp up

Notably, there was also a significant $8.6 million increase in short bitcoin position inflows due to recent price appreciation and perceived downside risks, CoinShares Head of Research James Butterfill wrote — more than double the prior week's short inflows.

Some of those risks seemed to present themselves earlier today, resulting in the liquidation of more than $94 million in bitcoin positions on centralized exchanges, with the majority ($85 million) being longs. This contributed to a total of $360 million in liquidations across various platforms, according to CoinGlass data, as bitcoin fell as much as 10% on some exchanges before rebounding. Bitcoin is currently trading for around $42,364, according to The Block’s price data.

Blockchain equities witness record inflows as stocks surge

Blockchain equities also continued an eight-week streak, registering their largest weekly inflows on record at $126 million. 

Last week, Bitcoin mining firms Bitfarms and Core Scientific surged 46.2% and 43.5%, respectively, with Argo Blockchain (31%) and Terawulf (20%) also posting significant gains. Not every miner fared the same, though. Cipher Mining faced a loss of 4.3% over the week, while Hut 8's stock fell 3.9%.

Coinbase and MicroStrategy stock underperformed bitcoin, rising 1.5% and 5.1%, respectively, compared to bitcoin’s 6.6% gain. Bitcoin mining hardware manufacturers Canaan had a tougher week, sliding 19%, joining Galaxy (-1.62%) and Bakkt (-3.80%) as some of the only crypto-related stocks to lose value last week.