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The crypto market witnessed a major milestone last week when investment products globally recorded a net inflow of roughly $3.13 billion, driven mainly by US spot Bitcoin exchange-traded funds (ETFs). facts from CoinShares.
This increase highlights the growing institutional interest and confidence in the crypto market, with Bitcoin leading the way. CoinShares reveals that net inflows into crypto funds have reached $37 billion to date, while total assets under management (AUM) have risen to a new high of $153 billion.
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Bitcoin takes the lead, Altcoins show growth
The recent inflow marks the seventh straight week of positive moves for global crypto investment products managed by leading firms such as BlackRock, Fidelity, Grayscale and ProShares.
A substantial portion of last week’s inflows, about $2.05 billion, came from BlackRock’s IBIT product, underscoring the dominance of U.S. funds in the global space. These inflows surpassed the first-year debut of US gold ETFs, which raised just $309 million.
Bitcoin-based funds led the inflows, contributing $3 billion to the weekly total. These inflows coincided with Bitcoin’s continued price rise, generating additional interest from institutional and retail investors.
However, the higher prices also fueled a notable $10 million inflow into short Bitcoin products, bringing the monthly figure for these products to $58 million – the highest since August 2022.
While Bitcoin dominated, altcoins also attracted significant investment. Solana emerged as the second most popular asset among institutional investors, with net weekly inflows of $16 million, surpassing Ethereum’s $2.8 million.
Other altcoin-based funds also saw notable inflows, with XRP, Litecoin and Chainlink attracting $15 million, $4.1 million and $1.3 million respectively. These inflows indicate growing confidence in the broader altcoin market, driven by price increases and increasing adoption.
Global crypto inflows and regional trends
The dominance of US funds was evident in regional fund flows, which accounted for $3.2 billion in net weekly inflows.
However, this was somewhat “neutralized” by outflows from European markets, including $84 million, $40 million and $17 million from crypto investment products in Sweden, Germany and Switzerland respectively.
Despite these regional outflows, the overall trend remains bullish, largely driven by institutional participation in the US market.
Notably, CoinShares’ continued inflows reflect a combination of factors, including the market’s positive sentiment on the bull run and the increasing acceptance of crypto as a legitimate asset class.
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The launch of spot Bitcoin ETFs has been a pivotal development. It provides institutional investors with a regulated opportunity to gain exposure to digital assets.
As a result, the cryptocurrency market is witnessing a shift towards mainstream adoption, further supported by strong price performance and consistent inflows through various investment products.
Featured image created with DALL-E, Chart from TradingView
Credit : www.newsbtc.com
