Record Year-to-Date Inflows of $13.8 Billion in Crypto Investment Products

Europe's Crypto Boom

Global crypto investment products have witnessed an unprecedented surge in annual inflows, reaching $13.8 billion year-to-date, with an additional $646 million added last week. However, there are indications that the hype surrounding exchange-traded funds (ETFs) is beginning to moderate, according to James Butterfill, Head of Research at CoinShares.

Leading asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares collectively attracted $646 million in inflows globally last week, as reported by CoinShares. This follows the previous week’s net inflows of $862 million, pushing the year-to-date inflows to a historic high of $13.8 billion, surpassing the prior annual record of $10.6 billion set in 2021, within just a few months into 2024.

This surge indicates a sustained recovery for global crypto funds, following nearly $1 billion worth of outflows observed for the week ending March 22. However, Butterfill noted a moderation in appetite from ETF investors, with weekly flow levels not reaching the heights seen in early March. Additionally, trading volumes declined to $17.4 billion last week compared to $43 billion in the first week of March.

Bitcoin Continues to Dominate

Bitcoin remains the primary focus for global crypto investment products, with a net addition of $663 million last week. Conversely, short-bitcoin funds experienced their third consecutive week of outflows, totaling $9.5 million, indicating minor capitulation among bearish investors.

ETFs remain dominant, accounting for $484.5 million of last week’s net inflows.

Bitcoin is currently trading up 4% over the past week at $72,129, while the GMCI 30 index, representing the top 30 cryptocurrencies by market capitalization, has seen an 8% increase during the same period, reaching 154.27.

Inflows into Other Cryptocurrencies

Investment products tied to Litecoin, Solana, and Filecoin also attracted inflows of $4.4 million, $4 million, and $1.4 million, respectively, last week. However, funds based on Ether experienced outflows for the fourth consecutive week, losing $22.5 million.

Regional Sentiment

Regionally, sentiment remains polarized, with U.S.-based funds adding $648 million last week, alongside inflows for products in Brazil, Hong Kong, and Germany. However, Switzerland and Canada recorded outflows of $27 million and $7.3 million, respectively.

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