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Bitcoin boosts the market: A whopping $13.5 billion inflow in 2024

2min Read

However, the demand for ETFs in April was subdued when compared with early March.

Digital Asset Fund Flows

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  • YTD inflows hit an all-time high (ATH) of $13.8 billion.
  • Volume clocked by ETFs plunged to $17.4 billion last week.

Digital asset investment products recorded another week of net inflows, powered by healthy demand for U.S.-based Bitcoin [BTC] spot exchange-traded funds (ETFs).

Inflows slow down

According to the latest report by digital asset management firm CoinShares, about $646 million was pumped into institutional crypto products last week, taking the year-to-date (YTD) inflows to an all-time high (ATH) of $13.8 billion.

For context, this figure was nearly 29% higher than than the total inflows recorded in the whole of 2021.

That being said, inflows slowed down considerably last week, compared to $862 million witnessed the week before.

Weekly crypto asset flows

Source : CoinShares

The total assets under management (AuM) dropped to $94.46 billion, marking a 3.5% drop from the week before.

AuM, which is a measure of inflows and market value of the underlying asset of an ETF, is a barometer of the fund’s performance. The higher the value of AuM, the more appealing it becomes to potential investors.

Bitcoin does the heavy lifting. Ethereum disappoints again

As highlighted earlier, the lion’s share of investments was grabbed by Bitcoin, the largest institutional crypto product. Funds tied to the king of cryptocurrencies witnessed inflows of $663 million last week.

With this, total inflows since the beginning of the year rose to an impressive $13.5 billion.

U.S. spot ETFs, which were cleared for trading early January, remained the focus. Total inflows into these relatively-new investment avenues hit $483 million last week, with four net positive days, as per AMBCrypto’s analysis of SoSo Value data.

However, inflows slowed considerably when compared with previous week’s of nearly $860 million.

CoinShares noted in the report that demand for ETFs was subdued when compared with early March. Indeed, volume clocked by ETFs plunged to $17.4 billion last week, compared to $43 billion in the first week of March.

Ethereum [ETH]-linked funds continued to struggle, experiencing their fourth straight week of outflows, totaling $22.5 million.

Interestingly, other leading altcoins defied this negativity, with Solana [SOL]  and Litecoin [LTC] recording impressive outflows of $4 million and $4.4 million respectively.

 

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Aniket Verma works as a journalist at AMBCrypto. Contrary to most who are primarily interested in merely tracking price movements of cryptos, his focus is on examining the niche intersection between cryptocurrencies and traditional finance. A so-so Bitcoin maximalist, Aniket has a strong disdain for memecoins and the unfounded frenzy they seem to generate every market season. Coming from a strong engineering background, Aniket previously worked as a Content Manager for TV9 Network. Before his stint over there, he was an Associate Multimedia News Producer at Reuters.
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