Crypto investment products hit a historic milestone with $3.13 billion in weekly inflows, fueled by surging interest in Bitcoin ETFs and growing market optimism.
According to Coinsshares’ weekly report, crypto investment products achieved a record-breaking milestone last week, logging net inflows of $3.13 billion, the highest on record. This surge, fueled primarily by U.S. spot Bitcoin ETFs, propelled year-to-date inflows to a record $37 billion and assets under management (AUM) to an all-time high of $153.3 billion.
U.S. Spot Bitcoin ETFs Drive the Surge
U.S. spot Bitcoin ETFs led the charge, contributing $3.38 billion to the weekly inflows. BlackRock’s iShares Bitcoin Trust (IBIT) dominated the landscape, attracting $2.05 billion, reflecting immense institutional interest. Overall, U.S.-based funds recorded $3.2 billion in inflows, partially offset by outflows of $141 million from Europe, particularly in Germany, Sweden, and Switzerland.
Bitcoin-based funds globally accounted for the lion’s share, with $3 billion in weekly inflows. Bitcoin’s price soared to a new all-time high of $99,655, narrowly missing the $100,000 milestone, before settling at $98,459.95. Analysts noted Bitcoin ETFs have far outpaced the debut of U.S. gold ETFs, which attracted only $309 million in their first year.
Altcoins Make Waves
Altcoins also saw notable inflows, with Solana (SOL) leading at $16 million, outpacing Ethereum (ETH), which registered $2.8 million. Other strong performers included XRP ($15 million), Litecoin ($4.1 million), and Chainlink ($1.3 million).
Conversely, multi-asset products faced $10.5 million in outflows for the second consecutive week, as investors showed a preference for single-asset products like Bitcoin and Solana.
Global and Market Sentiment Trends
Global markets reflected positive sentiment, with Australia, Canada, and Hong Kong recording inflows of $9 million, $31 million, and $30 million, respectively. Short-Bitcoin products saw $10 million in inflows for the week and $58 million for the month—the highest since August 2022—indicating hedging activity.
Bitcoin’s rally boosted its market capitalization to $1.77 trillion, surpassing Spain’s GDP. Analysts predict the crypto market could soon approach $4 trillion, with debates intensifying over whether Bitcoin or altcoins will dominate the next growth phase.
Institutional Interest Fuels Growth
BlackRock’s iShares Bitcoin Trust (IBIT) emerged as a key player, boasting $48.95 billion in net assets and cumulative inflows of $31.33 billion. Meanwhile, the Grayscale Bitcoin Trust ETF holds $21.61 billion in net assets despite experiencing $20 billion in outflows since its launch.
This unprecedented week underscores the surging institutional interest in cryptocurrency investment products, driven by the dominance of Bitcoin ETFs and rising demand for altcoins.