Key Points
- Digital asset funds have seen year-to-date inflows of $13.13 billion.
- Bitcoin and Solana were popular choices, while Ethereum experienced outflows.
Last week marked a return to form for digital asset funds, largely driven by significant investments into recently launched Bitcoin (BTC) spot ETFs in the U.S.
Strong Investment in Crypto Products
James Butterfill, Head of Research at CoinShares, reported that around $862 million in net inflows were recorded across institutional crypto products. This was a significant recovery from the $942 million in outflows seen the previous week.
This recent capital boost has pushed year-to-date inflows to $13.13 billion, which is approximately 25% higher than the total inflows recorded in 2021. Additionally, the total assets under management (AuM) increased to $98 billion, marking an 11% rise from the previous week.
Bitcoin and Solana Demand Soars
Bitcoin-linked funds were the top performers, with $865 million in inflows last week. This brings the total inflows since the start of the year to a notable $12.8 billion. The surge in demand can be attributed to U.S.-based spot Bitcoin ETFs, which attracted $860 million in inflows last week.
Meanwhile, funds connected to the second-largest cryptocurrency, Ethereum (ETH), saw outflows of $19 million last week. This negative sentiment likely stems from the decreased likelihood of an Ethereum ETF approval.
In contrast, Solana-based investment products saw inflows of $6 million last week, likely due to the impressive price performance of the native asset SOL.
