Cryptocurrency investment products saw a total of $346 million in inflows over the past week, marking its ninth consecutive week of inflows. Bitcoin-focused products dominated, with $312 million being invested in them, while Ethereum and Solana-focused products also saw significant numbers.
According to CoinShares’ latest Digital Asset Fund Flows report, this past week helped Bitcoin exchange-traded products’ inflows reach $1.5 billion for the year, compared to the $138 million of inflows Solana-based ETPs saw so far this year after seeing $3.5 million of inflows over the past week.
Products offering exposure to Ethereum (ETH), the second-largest cryptocurrency by market capitalization, saw $33.5 million of inflows over the past week, but year-to-date, they’ve seen $21 million of outflows.
Per the report, the current nine-week run of inflows is the “largest since the bull market in late 2021” and these inflows, along with cryptocurrency price rises, have seen total assets under management for cryptocurrency investment products reach $45.3 billion, the highest level in 18 months.
It details that short-sellers are capitulating, withdrawing $900,000 for the third consecutive week from products shorting Bitcoin, which has reduced their AUM by 61% since the peak in April 2023. ETPs were a popular way to access the asset class, as they accounted for 18% of the total Bitcoin spot volumes last week.
Investors have been raising their bets on cryptocurrency investment products at a time in which major financial powerhouses that collectively manage an astounding $27 trillion in assets are making inroads into the world of Bitcoin and cryptocurrency after a race to list the first spot Bitcoin exchange-traded fund (ETF) in the United States kicked off.
The $27 trillion figure, it’s important to point out, represents a grand total of assets under management across the aforementioned institutions, and only a minuscule fragment of this gargantuan sum is anticipated to be channeled into cryptocurrency investments.
Featured image via Unsplash.
