Bitcoin investment products were responsible for 99% of all crypto inflows last week, with total assets under management hitting $67 billion – the highest level since December 2021.
Bitcoin-related investment products saw over 99% of the $2.45 billion inflows last week.
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Posted February 20, 2024 at 2:11 am EST.
It was another big week for digital asset investment products as massive demand for spot bitcoin exchange-traded funds (ETFs) took centre stage once again.
According to data compiled by CoinShares on Feb. 19, digital asset investment products — which included spot Bitcoin ETFs issued by BlackRock, Fidelity, Grayscale, Ark/21Shares and others — saw a total of $2.45 billion worth of inflows, which marked a new weekly record.
Largest weekly inflows into Bitcoin ETFs on record at US$2.45bnhttps://t.co/J0urqRyaWX
— James Butterfill (@jbutterfill) February 19, 2024
Bitcoin-related investment products saw over 99% of the inflows, all of which came almost exclusively from the US.
“This represents a significant acceleration of net inflows, distributed widely among various providers, indicating an increasing interest in spot-based ETFs,” wrote CoinShares’ head of research James Butterfill in a report.
He noted that outflows from incumbent players had also “decreased dramatically.” Butterfill was likely referring to Grayscale Investments’ Grayscale Bitcoin Trust (GBTC), which was a closed-end fund that converted to an ETF, as the one of the incumbent players. GBTC has seen more than $7 billion worth of outflows since its first day of trading as an ETF five weeks ago, but still boasts $23 billion in assets under management (AUM).
The inflows into other bitcoin ETFs have more than compensated for these outflows, however, with total AUM across crypto funds now standing at over $67 billion — the highest level since December 2021.
At the time of writing, bitcoin was trading at $51,931, gaining 25% over the last month. In a research note last October, crypto fund Galaxy Digital estimated that spot bitcoin ETFs would attract around $14 billion worth of inflows in the first year of issuance, which would likely lead to a 74% rise in Bitcoin’s price the same year.
How Much Money Will Flow Into Bitcoin ETFs? Here’s One Projection
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- Source: https://unchainedcrypto.com/bitcoin-etfs-drive-record-2-45-billion-weekly-inflows-to-crypto-funds-coinshares/
