Crypto Funds Hit $2.5B Inflows for 3rd Week, Bitcoin ETFs Lead
Bitcoin Drives Crypto Inflows to 26-Week High
Crypto funds recorded net inflows of over $2.5 billion for the third week in a row. This is primarily due to Bitcoin, which accounted for over 99% of total inflows.
Record Inflows into Digital Asset Funds
Last week, digital asset funds recorded record inflows totaling $2.45 billion. This was fueled by the rapidly increasing institutional interest in Bitcoin [BTC] ETFs in the spot market. According to crypto asset management company CoinShares, net inflows more than doubled compared to the previous week. This also marks the third consecutive week with a net capital inflow into institutional crypto products.
Record High Since December 2021
With the latest figures, total inflows since the beginning of 2024 have exceeded the $5 billion mark. In addition, total assets under management (AUM) rose to a 26-month high of $67 billion. It should be noted that AUM is not only dependent on the money flows of investors into and out of a fund, but also on the price performance of the underlying asset. Recent price movements that drove leading assets like Bitcoin and Ethereum [ETH] to cyclical highs were a key factor in the rising AUM.
Bitcoin Spot ETFs in the Spotlight
Funds linked to Bitcoin accounted for over 99% of total inflows last week, bringing inflows since the beginning of the year to $5.02 billion. Much of the activity focused on the newly introduced spot ETFs in the US market. In fact, the USA accounted for 99% of total inflows last week, according to the report.
Ethereum-Linked Funds on the Rise
Funds linked to other major cryptocurrencies such as Ethereum also recorded impressive inflows of over $21 million. The sentiment was likely bolstered by a weekly increase in ETH’s market value by 18%, as data from CoinMarketCap shows. On the other hand, Solana [SOL] recorded a capital outflow of $1.6 million, which the report attributed to negative sentiment following the recent network outage.
Outlook
Recent developments suggest that institutional interest in crypto assets remains strong and has the potential to continue to grow. Bitcoin and Ethereum play a crucial role in this. It remains to be seen how the situation will develop in the coming weeks.
