Bitcoin and Crypto Products See Largest Consecutive Inflows Since 2021

• Over the past week, digital asset investment products have seen inflows of $137 million, bringing the total inflows over the past four weeks to an impressive $742 million.
• According to James Butterfill, the Research Head at CoinShares, these volumes also represent a larger proportion of the total crypto market trading volume.
• The recent report highlights that Bitcoin continues to maintain its dominance in the digital asset market, with inflows into Bitcoin investment products accounting for 99% of the total inflows.

The impressive inflow of digital asset investment products continued over the past week, making it the largest consecutive inflow since 2021.

Impressive Increase in Digital Asset Investment Products!

Over the past week, digital asset investment products have seen inflows of $137 million, and with some adjustments made over the past four weeks, the total inflows have reached an impressive $742 million.

According to CoinShares’ weekly report, this marks the largest series of inflows since the last quarter of 2021. Additionally, the trading volumes of crypto investment products continue to exceed the annual average of $1.4 billion.

CoinShares’ weekly reports provide concise summaries of inflows and outflows in popular exchange-traded products (ETPs), investment funds, and over-the-counter (OTC) securities related to cryptocurrencies like Bitcoin, Ethereum, and other altcoins. Last week, the trading volumes reached $2.3 billion, highlighting the industry’s interest.

According to James Butterfill, the Research Head at CoinShares, these volumes also represent a larger proportion of the total crypto market trading volume and reached a significant share of 11% last week, surpassing the average of 2%.

Bitcoin Dominates Investor Activities

The report emphasizes that Bitcoin continues to maintain its dominance in the digital asset market, with inflows into Bitcoin investment products reaching $140 million, accounting for 99% of the total inflows.

ProShares’ Bitcoin Strategy ETF (BITO), launched in October 2021, reached a total of $1 billion in assets under management, with the largest inflow reaching $109 million.

Alongside last week’s price increase, short-term Bitcoin investment products experienced 12 consecutive weeks of outflows, totaling $3.2 million. This prolonged period of outflows resulted in a significant decline in total assets under management for short-term Bitcoin products, decreasing from a peak of $198 million in April to only $55 million last week.

Meanwhile, Ethereum experienced a price increase but did not accompany it with inflows. Last week, the second-largest cryptocurrency in the industry saw outflows of $2 million, making it the asset with the highest outflows of the year. On the other hand, altcoins like Solana, Polygon, and Litecoin saw small inflows ranging from $0.3 to $0.5 million.

These trends highlight the dominance of Bitcoin in the digital asset market and significant investor interest focused on the leading cryptocurrency. Geographically, the majority of the $137 million inflows into digital asset investment products were concentrated in North America, with $109 million in the United States and $28 million in Canada.

In contrast, there were small outflows observed in European digital asset investment products, indicating a more cautious sentiment or potential profit realization among investors in the region. However, the report notes that Switzerland was an exception, recording small inflows into digital asset investment products.