Digital Asset Investment Products Sees $932 Million Inflows


Led by spot Bitcoin ETF, Digital asset investment products experienced inflows totaling $932 million for the second week. According to a report published by James Butterfill on Medium showing weekly crypto asset fund flows, the surge in investment was largely attributed to a lower-than-expected Consumer Price Index (CPI) report, which had a significant impact on market sentiment.

Grayscale Experienced Inflows 

The CPI report, a critical measure of inflation, came in below analysts’ predictions, signaling a potential easing of inflationary pressures. This unexpected data release prompted a flurry of investment activity, particularly in the latter part of the week. During the last three trading days, 89% of the total inflows were recorded, highlighting the immediate market response to CPI news.

Despite experiencing $16.6 billion in outflows since the launch of its spot Bitcoin ETF in January, Grayscale saw a minor inflow for the first time, amounting to $18 million. In addition, Switzerland and Germany experienced minor inflows of $27 million and $4.2 million, respectively, while Hong Kong and Canada witnessed outflows amounting to $83 million and $17 million, respectively.

Likewise, Solana, Chainlink, and Cardano saw $4.9 million, $3.7 million, and $1.9 million in inflows respectively. Meanwhile, Ethereum (ETH) continues to experience bearishness over the prospects for SEC approval of a spot-based ETF with outflows of $23 million. 

Crypto Investment Products Continues to Experience Surge 

A few days ago, crypto investment products experienced a surge in inflow for the first time in over a month, reaching $130 million with the United States frontrunning the trend. According to reports, the United States received $135 million in crypto inflow, following its substantial $721 million inflow in February.

Additionally, Bitcoin continued to lead the way in attracting investments, with $144 million in inflows recovering from a weak month. This surge in capital is attributed to the newly issued Exchange-Traded Funds (ETFs), which attracted a remarkable $41.7 billion in inflows. This spot Bitcoin ETF surge takes its backing from the growing list of institutional adopters as confirmed in the filed Form 13-F lodged with the US SEC this month.

US Spot Bitcoin ETF See Three Days Inflows

Recall that in April, the rising popularity of Spot Bitcoin (BTC) Exchange-Traded Funds (ETFs) became evident as spot BTC ETFs marked their third consecutive day of net inflows, totaling an impressive $31.64 million.

According to the data, BlackRock’s spot Bitcoin ETF brought in $37.92 million, the largest daily net inflow amongst others. Ark Invest brought in $33.28 million, while Bitwise had $23.23 million in net inflows. This significant influx of funds brought the total net inflow to $12.42 billion, with a total net assets of $55.82 billion.

Furthermore, the consecutive days of net inflows highlight a sustained trend rather than a fleeting interest in Bitcoin ETFs. This report comes months after the US Spot BTC ETF industry recorded six straight days of net positive inflows totaling nearly $715 million.

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