Crypto Investment Products Sees $130M in Inflows: Reports

May 13, 2024

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Crypto investment products are experiencing a surge in inflow for the first time in over a month, reaching $130 million with the United States frontrunning the trend. According to a report published by James Butterfill on Medium showing weekly crypto asset fund flows, the Exchange Traded products continue to decline, with $8 billion a week compared to the $17 billion average last month.

Despite a dip in trading volumes compared to previous weeks and months, trading activity remains substantially higher than in 2023.

United States Leads the Crypto Inflow Charge

Regionally, the United States received the majority of inflows, with a total of $135 million in crypto inflow. Grayscale Investment, an incumbent, had the lowest weekly outflows since January, amounting to $171 million. The US is a focal point in the digital asset investment landscape, witnessing a substantial inflow of $721 million in February.

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This surge in capital can be attributed to the introduction of newly issued Exchange Traded-Funds (ETFs), which attracted a remarkable 41.7 billion in inflows. These ETFs have been performing strongly since their launch on January 11th, averaging $1.9 billion in inflows in January and accumulating $7.7 billion in total. Despite this positive momentum, incumbent issuers experienced outflows totaling $6 billion.

Bitcoin (BTC) Also Experiences Inflows

Bitcoin continues to lead the way in attracting investments, with $144 million in inflows, recovering from a weak month. However, short Bitcoin ETPs experienced outflows totaling $5.1 million, bringing the total outflows of the past 8 weeks to $18 million.

In February, Bitcoin attracted inflows of $703 million, which accounts for 99% of all flows into digital asset investment products. Conversely, short Bitcoin products also experienced minor outflows of $5.3 million, coinciding with a reversal of negative price momentum.

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This influx of funds into Bitcoin highlights the sustained trust and attraction towards the primary cryptocurrency among investors.

Six Days of Inflows in Spot Bitcoin ETFs

Just last month, spot BTC ETFs marked their third consecutive day of net crypto inflow, totaling an impressive $31.64 million. According to the report, 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 has $23.23 million in net inflows.

However, Grayscale’s GBTC recorded $66.88 million worth of net outflow. This significant influx of funds has brought the total spot BTC ETFs net inflow to $12.42 billion, with a total net assets of $55.82 billion.