Crypto funds hit $2.5 billion weekly inflow record amid growing spot Bitcoin ETF interest

Quick Take

  • Digital-asset investment products witnessed record inflows last week, adding nearly $2.5 billion globally.
  • Assets under management at the funds are now back to December 2021 levels.

Crypto funds at asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares registered record inflows totaling $2.45 billion globally last week, according to CoinShares’ latest report.

Dominated by the new U.S. spot Bitcoin exchange-traded funds, year-to-date inflows to digital asset investment products now stand at $5.2 billion.

Combined with recent price increases, assets under management at the crypto investment firms now stand at $67 billion — the highest level since December 2021 amid the peak of the last bull market — CoinShares Head of Research James Butterfill wrote.

Weekly crypto asset flows. Images: CoinShares.

According to The Block's data dashboard, bitcoin is currently trading at $52,188 — up nearly 25% year-to-date.

BTC/USD price chart. Image: The Block/TradingView.

Accelerating inflows indicate increasing interest in US spot Bitcoin ETFs

The United States continued its regional dominance, accounting for 99% of the weekly inflows, totaling $2.4 billion. Switzerland and Germany-based funds registered modest inflows of $16.7 million and $13.3 million, respectively, while Sweden witnessed the largest regional outflows of $26.3 million.

The significant acceleration of net inflows, alongside a reduction in outflows from incumbents such as Grayscale’s converted GBTC fund, indicates increasing interest in the new U.S. spot Bitcoin ETFs, according to Butterfill. 

Unsurprisingly, bitcoin investment products also dominated, again accounting for 99% of last week’s inflows. However, some investors increased their short positions, with $5.8 million worth of inflows added to short-bitcoin products.

Ether led in terms of altcoin-based funds, witnessing $21.1 million in inflows. Avalanche funds saw inflows of $1 million, and Chainlink and Polygon products both added $900,000 — continuing their consistent weekly inflow streak.

However, Solana investment products did not fare so well, registering $1.6 million in outflows with the network's recent downtime dampening sentiment, Butterfill argued.

Blockchain equity ETF investors also took profits last week, leading to outflows totaling $167 million, Butterfill added.


Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 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 and writer of The Daily newsletter, keeping 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 latest market updates. You can get in touch with James on Telegram or 𝕏 via @humanjets or email him at [email protected].

Editor

To contact the editor of this story:
Adam James at
[email protected]