Spot Bitcoin ETF Demand Boosts Weekly Crypto Fund Inflows to Record 2.5 Billion Dollars

Crypto News- Last week marked a milestone for crypto funds managed by industry giants like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, as they collectively welcomed a record-breaking $2.45 billion in inflows worldwide, as per CoinShares’ latest report.

The surge was predominantly fueled by the introduction of new U.S. spot Bitcoin exchange-traded funds, propelling year-to-date inflows into digital asset investment products to reach an impressive $5.2 billion.

Spot Bitcoin ETF Demand Boosts Weekly Crypto Fund Inflows to Record 2.5 Billion Dollars

With recent price upticks, the assets under management for these crypto investment firms have now soared to $67 billion — a level not seen since December 2021 during the peak of the previous bull market, highlighted James Butterfill, CoinShares Head of Research. Concurrently, Bitcoin is currently trading at $52,188, marking a robust 25% increase year-to-date.

The overwhelming majority of these accelerating inflows, a staggering 99%, poured into the U.S. market, totaling $2.4 billion. Meanwhile, funds based in Switzerland and Germany saw modest inflows of $16.7 million and $13.3 million, respectively. However, Sweden experienced notable regional outflows amounting to $26.3 million.

This surge in net inflows, coupled with a decline in outflows from established players like Grayscale’s converted GBTC fund, signals a burgeoning interest in the new U.S. spot Bitcoin ETFs, Butterfill noted. Unsurprisingly, Bitcoin investment products remained dominant, accounting for 99% of last week’s inflows. Nonetheless, some investors opted to increase short positions, with $5.8 million inflows directed towards short-bitcoin products.

Among altcoins, Ether led the pack with $21.1 million in inflows. Additionally, Avalanche attracted $1 million in funds, while Chainlink and Polygon products each saw an influx of $900,000, extending their streak of consistent weekly inflows.