US handles 99% of global crypto product inflows as $708 million enters market US handles 99% of global crypto product inflows as $708 million enters market
$703 million invested in Bitcoin ETPs with Solana second highest at $13 million.
2 min read
Updated: Feb. 5, 2024 at 3:24 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto-related investment products saw a notable upswing in inflows last week, totaling a substantial $708 million, according to CoinShares’ latest weekly report.
This positive shift reverses two consecutive weeks of outflows from the industry, bringing the total Year-to-date flow to an impressive $1.6 billion. Altogether, the global assets under management for these products have risen to $53 billion.
“Trading volumes in ETPs fell to $8.2 billion compared to the prior week’s total of $10.6 billion, although remain well above the $1.5 billion week average in 2023. These volumes comprise 29% of Bitcoin’s total trading on trusted exchanges,” CoinShares Head of Research James Butterfill added.
Bitcoin dominates
Bitcoin experienced significant inflows of $703 million last week, comprising 99% of all flows to these investment products during this period.
Solana experienced a noteworthy $13 million inflow, surpassing other assets like Cardano, Litecoin, and XRP, which saw minor inflows of $600,000, $300,000, and $100,000, respectively.
Investors betting against BTC’s upward price trajectory withdrew approximately $5.3 million from Short Bitcoin products. Coincidentally, these outflows occurred the same week when the top digital asset’s price witnessed a reversal of its fortune, growing by around 3% to a peak of more than $43,700.
Similarly, Ethereum and Avalanche witnessed outflows of $6.4 million and $1.3 million, respectively, despite the positive reversal observed in the overall trend last week.
US still dominating flows.
Across regions, the United States is still dominating the flows thanks to the launch of the new spot Bitcoin ETFs. During the past week, the country witnessed a significant $721 million inflow, contributing to a four-week net inflow of $1.9 billion.
CoinShares explained that the cumulative inflow to these investment products since Jan. 11 now stands at $7.7 billion. However, this positive trend faces a challenge from a substantial $6 billion outflow reported by established entities like Grayscale Bitcoin Trust.
Similarly, other regions like Switzerland, Australia, France, Brazil, and Germany saw notable inflows, totaling around $26 million. However, the $31 million outflows from Canada overshadowed the inflows from these countries.
As a result, crypto Exchange-Traded Products (ETPs) BTC holdings have dipped to approximately 890,000 BTC from the 900,000 BTC seen last week, per ByteTree data.
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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
$3,468.59
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$194.991
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.
Avalanche
$40.1336
Avalanche is an umbrella platform for launching decentralized finance (DeFi) applications, financial assets, trading and other services.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that provides investors with access to Bitcoin through traditional investment channels.