- Last week’s rally in the crypto market led to a flow of money into crypto-backed investment products.
- Last week, Ethereum recorded its highest weekly inflow since March.
Digital asset investment products recorded inflows totaling $1.05 billion last week, marking the third consecutive week of inflows, digital asset investment firm CoinShares found in its new report.
According to the report, last week’s inflows brought inflows into cryptocurrency funds since the beginning of the year to a record-breaking $14.9 billion.
Source: CoinShares
The digital asset investment firm found that last week’s crypto market surge had a positive impact on activity around Exchange-Traded Products (ETPs).
During that period, weekly ETP trading volume increased 28% to $13 billion.
At the end of the period observed by CoinShares, total assets under management (AUM) for crypto-related investment products exceeded $98 billion.
This marked a 7% growth from the $91 billion recorded last week.
Regionally, most of the flows into crypto funds last week came from the United States, Germany and Switzerland, with inflows of $1.03 billion, $48 million and $30 million respectively.
Interestingly, Hong Kong experienced an outflow during the reporting week. According to CoinShares
“Disappointingly, since the initial positive launch of Bitcoin spot-based ETFs in Hong Kong (which attracted $300 million in the first week), there has been an outflow of $29 million in the past week.”
Bitcoin’s YTD inflows have toppled $14 billion
Last week, Bitcoin-backed investment products saw inflows of $1.03 billion, representing 98% of all inflows recorded during that period.
This pushed the leading coin’s YTD inflows to $14.60 billion, an 8% rally from last week’s YTD inflows of $13.58 billion.
As for short Bitcoin products, they recorded outflows of $4.3 million last week, bringing their month-to-date outflows to $8.8 million.
CoinShares said this may be due to the changing sentiments around Bitcoin from negative to positive.
“This is likely due to investors interpreting the FOMC minutes and recent macro data as mildly dovish,” it added.
Ethereum reaches a new milestone
During the reporting week, the leading altcoin, Ethereum, appeared [ETH]witnessed an inflow of $38 million into its digital asset products, which is the highest since March.
CoinShares said this was:
“Likely an early reaction to the approval of ETH ETFs in the United States.”
However, due to the series of outflows that Ethereum-backed products have experienced in recent weeks, monthly flows stood at a shortfall of $11.1 million last week.