Massive Money Rush: Crypto Funds Rise with Inflows of Over $500 Million Driven by Bitcoin ETFs

Crypto investment products have seen a notable increase in investor interest, marking the fourth consecutive week of substantial inflows. According to recent data from CoinShares, these products attracted approximately $598 million in investment in the last week alone.

This capital inflow brings year-to-date inflows to $5.7 billion, indicating a sustained appetite for digital assets among institutional and retail investors.

Amid this increase in investment, it is worth noting that the inflow was primarily driven by the introduction of new spot Bitcoin exchange-traded funds (ETFs) in the United States. These ETFs quickly gained traction, attracting huge amounts of net flows.

CoinShares Head of Research James Butterfill highlighted the importance of these inflows, noting that they represent 55% of the record inflows seen throughout 2021.

Regional trends and asset performance

The data also reveals interesting regional trends in cryptocurrency investment. US-based funds led the way with the largest inflows, totaling approximately $610 million. However, despite this positive momentum, Grayscale, an “established issuer”, recorded outflows of $436 million.

Meanwhile, Brazil and Switzerland recorded modest inflows of US$8.2 million and US$2.1 million, respectively. On the other hand, Canada recorded the largest outflows of almost 20 million dollars from investment products in digital assets.

Bitcoin-based funds dominated inflows, attracting $570 million in investments. This surge is dominated by US spot Bitcoin ETFs, which have accumulated more than $5.5 billion in net flows since their launch earlier this year.

Ethereum products also saw notable inflows, totaling $17 million. Additionally, Chainlink and XRP-based funds saw significant inflows of $1.8 million and $1.1 million, respectively.

Despite the positive momentum in crypto investment products, certain assets have faced challenges. Solana’s investment products recorded capital outflows for the second consecutive week, accumulating a total of 3 million dollars.

Butterfill attributed this drop to recent temporary network downtime. Additionally, blockchain-related stocks saw persistent outflows totaling $81 million. According to Butterfill, this indicates a sense of caution that prevails among investors in current market conditions.

It is important to note that the overall trajectory of the global cryptocurrency market has been largely positive. Notably, the total market capitalization of cryptoassets recently surpassed the $2 billion mark and shows a further increase of almost 1% in the last 24 hours.

This increase in market capitalization can be attributed to the significant gains seen in cryptocurrencies like Bitcoin and Ethereum, along with other major digital assets in the market. Despite experiencing a small decline of 1.7% last week, Bitcoin has maintained a substantial growth rate of over 20% over the past month.