Cryptocurrency Investment Funds See Record $2.45 Billion Inflows, AUM Taps $67 Billion
Cryptocurrency investment funds recorded $2.45 billion in inflows in the last seven days as Assets Under Management (AUM) surged.
A new CoinShares Digital Asset Fund Flow Report shows huge institutional flows into the cryptocurrency market last week.
Largest weekly inflows into Bitcoin ETFs on record at US$2.45bnhttps://t.co/J0urqRyaWX
— James Butterfill (@jbutterfill) February 19, 2024
This year has marked a significant increase in institutional investor market activities following the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC).
Last week, cryptocurrency products saw $2.4 billion inflows marking a record weekly figure. This recent surge brings the year-to-date (YTD) inflows to $5.2 billion.
A notable weekly impact on the market is the uptick in cryptocurrency total value locked (TVL) and assets under management. Cryptocurrency AUM stands at $67 billion, its highest position since December 2021.
The growth in AUM is largely due to an increase in price and a huge institutional inflow this year. Market capitalization is $1.97 trillion at press time with a $67 billion daily volume.
According to the report, blockchain equities recorded outflows of $167 million as investors took profits.
Bitcoin Leads Cryptocurrency Inflows
As expected, Bitcoin dominated inflows in the last seven days with its institutional products recording 99% of the entire figure.
Bitcoin saw inflows of $2.42 billion last week as spot ETF records surging inflows. BTC products have seen $3.6 billion in this month and an excess of $5 billion this year.
After the approval of ETFs on Jan 10, investors continue to increase their exposure to the largest cryptocurrency with surging bullish momentum.
Bitcoin trades over $52,000 pushing its AUM to $49 billion further increasing dominance in the market.
“Bitcoin saw over 99% of the inflows although some investors took the opportunity to add to short-bitcoin positions, which saw $5.8 million inflows.”
Altcoins Record Inflows
Institutional activity in the cryptocurrency market coming off the Bitcoin bullish drive trickled into altcoins with gains recorded in many coins.
Ethereum (ETH) posted $21 million inflows taking its yearly inflows to $34 million. Recently, positive sentiments have been attached to the asset following activities around a spot Ethereum ETF in the United States.
As more investment firms apply for a spot ETF, commentators predict more inflows around the asset. Trading firms also view the asset as the next big friend to institutional investors based on its staking feature which will yield profits.
Solana (SOL) recorded $1.6 million in outflows because of the network’s downtime last week. This year, Solana has seen inflows of $4.9 million after a strong run in 2023 which made it an institutional favorite.
Avalanche (AVAX), Chainlink (LINK), and Polygon (MATIC) saw inflows of $1 million, $0.9 million, and $0.9 million respectively.
The United States recorded a majority of institutional inflows based on the activities of newly approved ETFs. The jurisdiction saw 99% of the total inflows at $2.4 billion ahead of Canada and Europe.
“This represents a significant acceleration of net inflows, distributed widely among various providers, indicating an increasing interest in spot-based ETFs. Simultaneously, outflows from incumbent issuers have decreased dramatically.”
Switzerland and Germany notched $16.7 million and $13.3 million in inflows respectively while Canada saw net outflows of $0.1 million.
