According to CoinShares’ latest weekly report, cryptocurrency-related investment products saw a notable increase in inflows last week, totaling $708 million.
This positive change reversed two consecutive weeks of outflows from the industry, bringing total year-to-date flows to an impressive $1.6 billion. Combined, global assets under management for these products have grown to $53 billion.
“ETP trading volume decreased to $8.2 billion compared to last week’s total of $10.6 billion, but remains well above the 2023 weekly average of $1.5 billion. This volume represents 29% of all Bitcoin transactions on trusted exchanges. accounts,” added CoinShares research director James Butterfill.
Bitcoin rules
Bitcoin experienced significant inflows of $703 million last week, accounting for 99% of all flows to this investment product during this period.
Solana experienced notable inflows of $13 million, outpacing other assets such as Cardano, Litecoin, and XRP, which saw smaller inflows of $600,000, $300,000, and $100,000 respectively.
Investors betting on BTC’s upward price trajectory withdrew about $5.3 million from Short Bitcoin products. Coincidentally, this outflow occurred the same week that the price of the top digital asset reversed course, increasing by about 3% to a high of over $43,700.
Likewise, Ethereum and Avalanche witnessed outflows of $6.4 million and $1.3 million respectively, despite a positive reversal in the overall trend observed last week.
The United States still dominates the flow.
Across the region, the US continues to dominate the flow thanks to the launch of a new spot Bitcoin ETF. Over the past week, Vietnam saw significant inflows of US$721 million, contributing to net inflows of US$1.9 billion over four weeks.
CoinShares explained that cumulative inflows into these investment products since January 11th currently amount to $7.7 billion. However, this positive trend is facing challenges due to significant $6 billion outflows reported by incumbents such as Grayscale Bitcoin Trust.
Similarly, other regions such as Switzerland, Australia, France, Brazil and Germany also saw notable inflows totaling $26 million. However, outflows from Canada ($31 million) outpaced inflows from these countries.
As a result, cryptocurrency exchange-traded product (ETP) BTC holdings fell from 900,000 BTC last week to about 890,000 BTC, according to ByteTree data.