Bitcoin investment products were responsible for 99% of all crypto inflows last week, with total assets under management hitting $67 billion – the highest level since December 2021.
Bitcoin-related investment products saw over 99% of the $2.45 billion inflows last week.
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Posted February 20, 2024 at 2:11 am EST.
It was another big week for digital asset investment products as massive demand for spot Bitcoin exchange-traded funds (ETFs) took centre stage once again.
According to data compiled by CoinShares on Feb. 19, digital asset investment products, including spot Bitcoin ETFs issued by BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares saw a total of $2.45 billion worth of inflows, marking a new weekly record.
Largest weekly inflows into Bitcoin ETFs on record at US$2.45bnhttps://t.co/J0urqRyaWX
— James Butterfill (@jbutterfill) February 19, 2024
Bitcoin-related investment products saw over 99% of the inflows, all of which came almost exclusively from the U.S.
“This represents a significant acceleration of net inflows, distributed widely among various providers, indicating an increasing interest in spot-based ETFs,” wrote CoinShares’ Head of Research James Butterfill in a report.
He noted that outflows from incumbent players had also “decreased dramatically.” Butterfill was likely referring to Grayscale Investments’ newly converted ETF GBTC as the one of these incumbent players – GBTC has seen more than $7 billion worth of outflows since its first day of trading as an ETF five weeks ago, but still boasts of $23 billion in assets under management (AUM).
The inflows into other Bitcoin ETFs have more than compensated for these outflows, however, with total AUM across crypto funds now standing at over $6.7 billion – the highest level since December 2021.
At the time of writing, Bitcoin was trading at $51,931, gaining 25% over the last month. In a research note last October, crypto fund Galaxy Digital estimated that spot Bitcoin ETFs would attract around $14.4 billion worth of inflows in the first year of issuance, which would likely lead to a 74% rise in Bitcoin’s price the same year.
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