Inflows into investment funds based on Bitcoin and other cryptocurrencies have reached record levels this week.
Bitcoin continues to be the most sought-after cryptocurrency among investors, according to CoinShares' 170th report on inflows into crypto-asset investment funds published this week. In it, the firm's head of research, James Butterfill, highlighted that investment products based on cryptocurrencies and digital assets have reached a new high. record levels, returning to the levels of assets under management seen in December 2021.
According to report According to CoinShares, digital assets continue to gain relevance in the world of traditional finance, as more and more investors are interested in gaining exposure to the main cryptocurrencies on the market, Bitcoin and Ethereum.
Compared to the participation volumes previously seen in crypto-based investment funds, current fund inflows experienced a fairly significant acceleration, especially in those Bitcoin-based funds, suggesting that there is a growing interest in spot ETFs.
More than $2.400 billion in tickets
CoinShares highlighted that investment products based on Bitcoin registered Record weekly box office receipts of $2.423 billion, with US investors responsible for 99% of all inflows.
On the other hand, according to data published in the report, recent inflows into cryptocurrency investment products have brought the total inflows this year to $5.200 billion.
The inflow into cryptocurrency funds appears to coincide with the price increase that these cryptoassets are experiencing in the market.
At the time of writing, Bitcoin is trading above $51.500, while Ethereum is trading very close to $2.900 per ETH. However, although the prices of these cryptocurrencies, which are the two largest in the market by capitalization, have corrected slightly in the last few hours, Bitcoin and Ethereum did exceed the levels of $52.000 and $3.000, respectively, last week, thus boosting investor interest.
Solana loses its place as the favorite altcoin
SOL, the native cryptocurrency of the Solana network, has remained the altcoin of choice for investors for several consecutive weeks. However, Butterfill highlighted that the recent outage suffered by the blockchain affected the positive sentiment of investors towards this crypto asset. Therefore, this week, instead of inflows, Solana registered outflows in the order of $1,6 million.
Another cryptocurrency that saw outflows from investment funds this week was ADA, native to the third-generation blockchain Cardano, while Avalanche, Chainlink and Polygon saw inflows of $1 million, $0,9 million and $0,9 million, respectively.
Regarding the geographical location of investors, the CoinShares report highlighted that It was American investors who dominated the mutual fund market this week, followed by investors in Switzerland and Germany.
Finally, the investment fund that captured the largest volume of fund inflows was BlackRock's iShares Bitcoin Trust (IBIT), followed by Fidelity and Ark Invest cash investment funds.
The Grayscale Bitcoin Trust (GBTC), Grayscale’s private trust that was transformed into an exchange-traded fund last month after receiving authorization from the Securities and Exchange Commission (SEC), saw outflows of $623 million this week.
Continue reading: BlackRock and Fidelity Bitcoin ETFs Hold Over 200.000 BTC in Reserve
