Crypto Inflows Surge as Investors Bet on Bitcoin and Solana
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Investors poured $708 million in crypto inflows into the market last week, boosting the year-to-date inflows to $1.6 billion and the total global assets under management to $53 billion, according to the latest report from CoinShares.
The report shows that trading volumes in exchange-traded products (ETPs) dropped to $8.2 billion from $10.6 billion the previous week but still remained much higher than the $1.5 billion weekly average in 2023. ETPs are instruments that track the performance of an underlying asset, such as a cryptocurrency, a commodity, or an index.
The US market continued to dominate the crypto inflows, with $721 million flowing into newly issued exchange-traded funds (ETFs) last week.
These ETFs, which allow investors to gain exposure to Bitcoin without holding the actual coins, have attracted $1.9 billion on average in the past four weeks and $7.7 billion since their launch on January 11.
However, this has been partly offset by $6 billion of outflows from existing issuers, although the report notes that the pace of these outflows has slowed down recently.
Bitcoin Claims 99% of Crypto Inflows Last Week
Bitcoin, the largest and most popular cryptocurrency, accounted for 99% of the total crypto inflows last week, with $703 million. This suggests that investors are bullish on Bitcoin, despite the recent volatility and regulatory uncertainty.
The CoinShares report also indicates that short-bitcoin products, which allow investors to bet against the price of Bitcoin, saw minor outflows of $5.3 million as the negative price momentum reversed.
Among the other cryptocurrencies, Solana stood out with $13 million of inflows last week, surpassing Ethereum and Avalanche, which saw $6.4 million and $1.3 million of outflows, respectively.
Blockchain equities, which are stocks of companies that are involved in the blockchain industry, saw $147 million of outflows from one issuer last week, but this was masked by $11 million of inflows from other issuers. Blockchain equities are another way for investors to gain exposure to the crypto sector without directly holding the coins.
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