Global Crypto Funds Experience Historic Week
Crypto funds managed by leading asset managers, including BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, have seen a remarkable influx of $2.45 billion globally in the last week. This surge, as detailed in CoinShares’ recent report, marks a significant milestone, with year-to-date inflows reaching $5.2 billion, predominantly fueled by the newly introduced U.S. spot Bitcoin exchange-traded funds (ETFs).
Assets Under Management Revisit Peak Levels
Crypto Investment Firms Reach $67 Billion in AUM
The combination of recent inflows and the uptick in cryptocurrency prices has propelled the assets under management (AUM) at these investment firms to $67 billion. This figure matches the peak achieved during the bull market climax in December 2021, highlighting the sector’s robust growth and recovery.
Geographical Distribution of Inflows
U.S. Dominates with $2.4 Billion in Weekly Inflows
The United States has emerged as the predominant region for these record inflows, contributing 99% of the total with $2.4 billion. In contrast, Switzerland and Germany saw modest inflows, while Sweden experienced notable outflows, reflecting a varying regional interest in digital asset investment.
Growing Enthusiasm for U.S. Spot Bitcoin ETFs
Market Trends Indicate Shifting Investor Preferences
The remarkable increase in net inflows, coupled with a decrease in outflows from established funds like Grayscale’s GBTC, underscores a growing enthusiasm for U.S. spot Bitcoin ETFs. Bitcoin investment products continued to attract the vast majority of last week’s inflows, although there was a slight rise in investments into short-bitcoin products.
Altcoins and Blockchain Equity ETFs Show Mixed Results
Ether Leads Altcoin Funds; Blockchain Equities See Outflows
Ether topped the list of altcoin-based funds with significant inflows, while Avalanche, Chainlink, and Polygon also experienced positive investment trends. However, Solana funds faced outflows, attributed to the network’s recent downtime affecting investor sentiment. Additionally, blockchain equity ETFs witnessed profit-taking activities, resulting in outflows.
