Crypto AUM reaches two-year peak of $59 billion driven by US Bitcoin ETF inflows News ▸ US ▸ Bitcoin ▸ Investments
Crypto AUM reaches two-year peak of $59 billion driven by US Bitcoin ETF inflows
Last week, Bitcoin saw almost 98% of the inflows, while Ethereum and Cardano saw improved sentiment.
2 min read
Updated: Feb. 12, 2024 at 3:18 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Large inflows into the newly launched spot Bitcoin Exchange-Traded Funds (ETFs) in the United States have propelled the assets under management (AUM) for crypto-related investment products to a two-year high of $59 billion, according to CoinShares’ latest weekly report.
US dominate flows
During the past week, digital asset investment products witnessed significant inflows totaling $1.1 billion, primarily from the US.
This flow boosted the year-to-date inflows to $2.7 billion, with global AUM reaching $59 billion. Although outflows from Grayscale Bitcoin Trust (GBTC) have diminished, CoinShares warned about a significant selling pressure that could emerge from bankrupt Genesis’s move to divest its GBTC shares.
CryptoSlate reported that Genesis recently sought court approval to divest $1.6 billion of its shares held in several of Grayscale’s products, including GBTC, Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG).
“The outflows from incumbents have slowed significantly, but the potential sale of the Genesis holdings of US$1.6 billion could prompt further outflows in the coming months,” CoinShares Head of Research James Butterfill said.
Switzerland also experienced substantial inflows outside the US, amounting to nearly $40 million. Conversely, Canada, Germany, and Sweden observed minor outflows of $17 million, $10 million, and $6 million, respectively.
Bitcoin accounts for 98% of the inflow.
Across digital assets, Bitcoin remains dominant, accounting for 98% of last week’s inflows, with inflows exceeding $1 billion.
Ethereum and Cardano also experienced positive sentiments, with inflows of $16 million and $6 million, respectively. Other digital assets, such as Avalanche, Polygon, and Tron, recorded inflows of $500,000, $400,000, and $400,000, respectively.
Meanwhile, high-flying Solana recorded a modest inflow of $100,000 during the same period.
The improving market condition also resulted in outflows of $400,000 from Short BTC products. Last week, BTC’s price climbed to its highest value since the US Securities and Exchange Commission (SEC) approved several exchange-traded funds (ETFs) for public trading. Uniswap investment products also saw outflows of $500,000.
Notably, the bulk of outflows from blockchain equities were experienced by one issuer, totaling $67 million. Other issuers collectively saw inflows amounting to $19 million.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,468.01
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Cardano
$0.95055
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
Avalanche
$39.7768
Avalanche is an umbrella platform for launching decentralized finance (DeFi) applications, financial assets, trading and other services.
Solana
$194.514
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Genesis
Genesis is an institutional digital asset markets and a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.