Key Points
- Last week’s cryptocurrency market rally led to $1.05 billion inflows into crypto-backed investment products.
- Ethereum saw its highest weekly inflows since March, with $38 million invested into its digital asset products.
The recent rally in the cryptocurrency market resulted in a significant increase in funds flowing into crypto-backed investment products.
A new report by a digital asset investment firm revealed that last week, investment products in the digital asset space recorded inflows totaling $1.05 billion. This marked the third week in a row of inflows.
Record-Breaking Inflows
The report noted that these inflows brought the year-to-date (YTD) inflows into cryptocurrency funds to a record $14.9 billion.
The surge in the crypto market also had a positive effect on the trading volume of Exchange-Traded Products (ETPs), which increased by 28% to $13 billion.
By the end of the week, the total assets under management (AUM) for crypto-related investment products exceeded $98 billion, reflecting a 7% growth from the previous week’s $91 billion.
Regional Inflows and Outflows
The majority of the week’s inflows into crypto funds originated from the United States, Germany, and Switzerland, with inflows of $1.03 billion, $48 million, and $30 million, respectively.
In contrast, Hong Kong experienced outflows during the same period. The report stated, “Disappointingly, since the initial positive launch of Bitcoin spot-based ETFs in Hong Kong (which saw US$300m in the first week), there have been further outflows last week of US$29m.”
Bitcoin-backed investment products saw inflows of $1.03 billion, accounting for 98% of all inflows recorded during that week. This brought Bitcoin’s YTD inflows to $14.60 billion, an 8% increase from the previous week’s YTD inflow of $13.58 billion.
However, short-Bitcoin products recorded outflows of $4.3 million last week, resulting in month-to-date outflows of $8.8 million. The report suggested that this might be due to a shift in investor sentiment towards Bitcoin from negative to positive.
The leading altcoin, Ethereum [ETH], saw an inflow of $38 million into its digital asset products, marking its highest since March. The report attributed this to “an early reaction to the approval of ETH ETFs in the United States.”
However, due to the series of outflows that Ethereum-backed products have experienced in preceding weeks, its month-to-date flows were at a deficit of $11.1 million last week.
