Crypto Products See Largest Consecutive Inflows Since 2021

Digital asset investment products experienced $137 million in inflows over the past week, bringing the total inflows over the past four weeks—with some adjustments made to previous weekly data—to an impressive $742 million.

This marks the most substantial run of inflows since the final quarter of 2021, according to European digital asset management firm CoinShares’ weekly report. Furthermore, trading volumes for crypto investment products continue to surpass the yearly average of $1.4 billion.

CoinShares’ weekly reports provide a concise overview of investment inflows and outflows in popular exchange-traded products (ETPs), mutual funds, and over-the-counter (OTC) trusts related to cryptocurrencies such as Bitcoin, Ethereum, and other altcoins.

Last week, the trading volumes reached $2.3 billion, highlighting the robust activity in this sector.

As noted by James Butterfill, head of research at Coinshares, these volumes also represent a larger proportion of total cryptocurrency trading volumes, accounting for 11% last week, significantly higher than the average of 2%.

Bitcoin dominates investor activities

The latest report emphasized that Bitcoin continues to dominate the digital asset market, as inflows into Bitcoin investment products reached as much as $140 million, representing a staggering 99% of all inflows.

ProShares’ Bitcoin Strategy ETF (BITO)—the first U.S. Bitcoin futures ETF that was launched in October 2021—saw the largest inflows at $109 million as the fund reached $1 billion in total assets under management.

Amid last week’s price surge, short Bitcoin investment products experienced their 12th consecutive week of outflows, with a total of $3.2 million. This prolonged period of outflows has led to a significant decline in total assets under management for short-Bitcoin products, plummeting from a peak of $198 million in April to just $55 million last week.

At the same time, while Ethereum has also witnessed price appreciation, it has not been accompanied by inflows, the report notes.

Last week, the industry’s second-largest cryptocurrency experienced outflows of $2 million, maintaining its status as the asset with the highest outflows year-to-date. On the other hand, altcoins like Solana, Polygon, and Litecoin saw minor inflows ranging from $0.3 million to $0.5 million.

These trends highlight Bitcoin’s continued dominance in the digital asset market, with significant investor interest and inflows focused on the flagship cryptocurrency.

Geographically, the vast majority of the overall $137 million of inflows into digital asset investment products were concentrated in North America, with the U.S. witnessing inflows totaling $109 million and Canada seeing inflows of $28 million.

Conversely, Europe saw minor outflows in digital asset investment products, suggesting a more cautious sentiment or potential profit-taking among investors in the region. However, Switzerland stood out as an exception, recording minor inflows into digital asset investment products, added the report.