Key Points
Institutional interest in spot Bitcoin (BTC) continues to grow, leading to the fourth consecutive week of net inflows into digital asset investment products. CoinShares, a crypto asset management firm, reported that last week saw an influx of $598 million into cryptocurrency-linked funds. This brought the year-to-date (YTD) inflows beyond $5.7 billion.
This figure already accounts for 55% of the record inflows seen in 2021, a year that marked the peak of the crypto market. The total assets under management (AuM) reached a 26-week high of $68.3 billion, nearing the $87 billion peak recorded in November 2021.
AuM and Institutional Interest
AuM is a significant measure of a fund’s performance. The higher the AuM value, the more likely it is to attract investments. The bulk of these investments, totaling $610 million, were accounted for by the recently-launched spot Bitcoin ETFs in the U.S.
There was a noticeable decrease in outflows from the Grayscale Bitcoin Trust (GBTC) last week, amounting to $436 million. This was a significant drop from the $640 million withdrawn from the incumbent issuer in a single day the previous week.
Bitcoin, the largest institutional crypto product, saw investments of $570 million last week, pushing YTD inflows to $5.6 billion. However, the leading crypto asset’s sideways trajectory impacted market sentiment, resulting in a significant drop from the $2.3 billion inflows recorded the previous week.
Funds associated with the second-largest cryptocurrency, Ethereum (ETH), also experienced notable inflows of $17 million last week. Conversely, the outage-induced FUD led to a second week of outflows from Solana (SOL)-linked crypto products.
The global crypto market rose by 6.32% in the last 24 hours due to significant gains by leading assets, according to data from CoinMarketCap. If this rally continues, the upcoming week could see significantly higher inflows into the digital assets market.
