Crypto Fund Inflows Surge by 700 Million Dollars Amid Ebbing GBTC Impact

Crypto News- In a noteworthy turnaround, crypto funds managed by industry giants like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares experienced a robust inflow of $708 million globally last week, as per the latest insights from CoinShares.

Crypto Fund Inflows Surge by 700 Million Dollars Amid Ebbing GBTC Impact

This surge marks the second-largest inflow since the launch of spot bitcoin exchange-traded funds in the United States on January 11 and the second-highest since the peak of the bull market in late 2021. The impressive inflows came after two consecutive weeks of outflows, bringing the year-to-date net inflows to $1.6 billion, elevating total assets under management to a substantial $53 billion, as reported by CoinShares’ Head of Research, James Butterfill.

While the inflows remain substantial, the ongoing decrease in outflows from Grayscale’s higher-fee converted spot bitcoin ETF (GBTC) played a pivotal role in bolstering the positive trend. GBTC witnessed $927 million in outflows last week, a notable drop from the previous week’s $2.2 billion, indicating a significant slowdown in the outflow momentum, as highlighted by Butterfill.

Crypto Funds Rebound with a 708 Million Dollars Surge: Insights from Leading Asset Managers and Noteworthy Trends in Altcoin Flows

Nevertheless, trading volumes for these funds dipped to $8.2 billion from the prior week’s $10.6 billion, though still surpassing 2023’s weekly average of $1.5 billion. This latest figure constitutes 29% of bitcoin’s total trading volume on reputable exchanges last week, according to Butterfill. Bitcoin and US ETFs continued their dominance, capturing $703 million in inflows, constituting a staggering 99% of all flows.

In the altcoin realm, Solana emerged as a frontrunner with $13 million in inflows, while ether and Avalanche investment products experienced outflows of $6.4 million and $1.3 million, respectively. Bitcoin is currently trading at $43,341, exhibiting a 3% increase over the past week, though still down approximately 12% since the spot bitcoin ETFs debuted on January 11. The nine newborn US spot bitcoin ETFs, excluding GBTC, averaged $1.9 billion in inflows over the last four weeks, totaling $7.6 billion. Factoring in GBTC’s $6 billion in total outflows, the net inflows across these ETFs stand at around $1.6 billion.