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Record Inflows Propel Crypto Investment Funds to $67 Billion AUM Amid Bitcoin ETF Surge

Crypto Investment Funds See Record Inflows, Reaching $67 Billion in Assets Under Management

Feb 19, 2024
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BlackRock, Fidelity, and others experience surge in investments as U.S. Bitcoin ETFs drive record inflows, CoinShares report reveals.

Crypto investment funds across major asset managers like BlackRock, Bitwise, Fidelity, and others experienced unprecedented inflows, reaching a total of $2.45 billion globally last week, according to CoinShares' latest report.

The surge in inflows, largely driven by the introduction of new U.S. spot Bitcoin exchange-traded funds, has contributed to year-to-date inflows in digital asset investment products reaching $5.2 billion.

CoinShares Head of Research James Butterfill noted that coupled with recent price hikes, assets under management at these crypto investment firms now stand at $67 billion — marking the highest level since December 2021 during the peak of the last bull market. Bitcoin, as per The Block's data dashboard, is currently trading at $52,188, reflecting a nearly 25% increase year-to-date.

The United States maintained its dominance regionally, accounting for 99% of the weekly inflows, totaling $2.4 billion. Meanwhile, Switzerland and Germany-based funds saw modest inflows of $16.7 million and $13.3 million, respectively, whereas Sweden experienced the largest regional outflows amounting to $26.3 million.

The substantial surge in net inflows, coupled with a decrease in outflows from established players such as Grayscale's converted GBTC fund, underscores the growing interest in the new U.S. spot Bitcoin ETFs, according to Butterfill.

Bitcoin investment products remained dominant, representing 99% of last week's inflows. However, some investors opted to increase their short positions, with $5.8 million inflows directed towards short-bitcoin products.

In terms of altcoin-based funds, Ether led the pack with $21.1 million in inflows. Additionally, Avalanche funds saw inflows of $1 million, while both Chainlink and Polygon products added $900,000 each, maintaining their consistent weekly inflow streak.

On the contrary, Solana investment products faced challenges, recording $1.6 million in outflows attributed to the network's recent downtime, which dampened sentiment, as per Butterfill's analysis. Butterfill also highlighted that investors in blockchain equity ETFs took profits last week, resulting in outflows totaling $167 million.

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