Institutional Bitcoin Products See $598M Inflow in a Week, CoinShares Reports
Summary:
CoinShares reports a $598 million inflow into institutional Bitcoin investment products in the past week, marking the fourth week of consecutive inflows for crypto exchange-traded products (ETPs). Year-to-date inflows now exceed $5.7 billion, driven by institutional investors expanding their Bitcoin investments via spot Bitcoin ETFs. US-based digital asset investment products witnessed inflows of $609.5 million. Bitcoin, Ether, Litecoin and Ripple's XRP ETPs saw the highest inflows while Solana experienced outflow due to recent system downtimes.
The latest report by CoinShares reveals that institutional Bitcoin investment products have experienced inflows of $598 million in the past week. CoinShares noted that this is the fourth consecutive week of inflows observed for cryptocurrency exchange-traded products (ETPs).
The influx figures for this year alone have now risen over the $5.7 billion mark, as more and more institutional investors are turning towards Bitcoin spot ETFs to broaden their Bitcoin investments, according to CoinShares' "Digital Asset Fund Flows Weekly" report released on February 26. James Butterfill, Head of Research at CoinShares, confirmed that total assets under management (AuM) had reached a new peak of $68.3 billion earlier in the week; this is the highest level since December 2021, even though it's still lower than the all-time peak of $87 billion reached November 2021.
Between the period of 19 and 23 February, institutions ploughed $598 million into cryptocurrency products offered by BlackRock, ARK Invest, Grayscale, Bitwise, ProShares, Fidelity, and 21Shares; this happened during a significant buying activity stimulated by spot Bitcoin ETFs amidst a progressive market recovery.
The lion's share of the inflows was into Bitcoin (BTC) funds, which accounted for 95% of the total with approximately $570 million. Inflows into Ether (ETH) were second at $16.8 million, with Litecoin (LTC) and Ripple’s XRP ETPs both gaining around $1 million. Unfortunately, Solana (SOL) experienced outflows up to $3 million, which, according to CoinShares, may have resulted from recent system downtimes impacting the token's appeal.
The US saw significant uptake in the digital asset investment products, with inflows amounting to $609.5 million. Meanwhile, outflows from Grayscale totaled $436 million.
Other regions also participated in the movement, with Brazil and Switzerland logging moderate inflows of $8.2 million and $2.1 million respectively. Canada however, experienced the highest outflows from digital asset investment products, losing $17.8 million, followed by Sweden with $8 million in outflows.
The growth in Bitcoin product inflows aligns with the recent surge in Bitcoin pricing, which saw a rise to over $53,000 before a minor adjustment took it to $50,500. As of publication time, Bitcoin had again surpassed this figure to establish the new annual maximum at $53,650.
The last time Bitcoin was traded over $53,600 was over two years ago, on 3rd December 2021, when it descended from a high of $57,872 leading to a negative trend that pulled the price down to $16,600 in November 2022.
This report does not offer investment advice or recommendations. Each investment and trading decision carries potential risk, and individuals are advised to engage in their own research before making any financial commitments.
Published At
2/26/2024 9:01:42 PM
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