Crypto investment products attract $1.2B in weekly capital with Bitcoin at the forefront
Digital asset investment products register $1.2 billion in capital inflows for the fourth week running, with Bitcoin dominating flows and blockchain equity ETFs reaching unprecedented demand levels, according to CoinShares data.
Digital currency investment products maintained their positive momentum from the previous week as Bitcoin reached price levels not witnessed since the beginning of February.
Exchange-traded products (ETPs) focused on cryptocurrencies registered $1.2 billion in capital inflows during the past week, representing their fourth week in a row of positive flows, according to a Monday report from CoinShares.
This consecutive streak of inflows represents the largest seen throughout the current year, with the cumulative four-week total reaching approximately $3.9 billion, exceeding the prior four-week period of $2.9 billion recorded in March.
Assets under management across all products climbed to $155 billion, representing the highest point since Feb. 1, bolstered by Bitcoin's price action climbing beyond $76,000 for the first time following its February pullback, according to James Butterfill, head of research at CoinShares.
He noted that the expansion in crypto ETP activity probably mirrors strengthening institutional appetite amid a backdrop of Bitcoin's rally. "The market now turns to the FOMC decision on April 28–29, which is likely contributing to caution at the margin," Butterfill added.
Bitcoin leads inflows as most assets see gains
Bitcoin dominated the previous week's ETP capital inflows, attracting $932.5 million and pushing year-to-date flows to $4 billion. A substantial portion of these capital movements originated from US-listed spot Bitcoin exchange-traded funds, which registered approximately $824 million in inflows during the past week, based on SoSoValue data.
Ether ETPs secured the second position with $192 million of capital inflows, representing the third week in succession of gains exceeding $190 million, bringing year-to-date inflows to a total of $390 million.
XRP funds saw a reversal back to positive inflows following the previous week's $56 million in capital outflows.
In spite of the overall positive trend across the sector, short-Bitcoin products similarly recorded moderate inflows totaling $16.5 million. This figure was largely consistent with the previous month's average levels, indicating continued but not heightened hedging demand among investors, Butterfill said.
Blockchain equity ETFs hit record weekly inflows
The analyst further observed that blockchain equity ETFs registered an all-time high week for capital inflows.
These ETFs have attracted $617 million in inflows throughout the last three weeks, Butterfill said, underscoring growing appetite for exposure to the wider technology and digital asset space.
From a regional perspective, the US led with $1.1 billion of capital inflows. Germany recorded approximately $62 million, representing more than twice the previous week's figure, while Switzerland turned around the prior week's $138 million of outflows with $35 million of inflows.