Cryptocurrency investment funds saw inflows of $2.45 billion in the last seven days as assets under management (AUM) surged.
a new CoinShares Digital Asset Fund Flow Report shows huge institutional flows in the cryptocurrency market last week.
Largest Weekly Inflows Recorded into Bitcoin ETFs Hit $2.45 Billionhttps://t.co/J0urqRyaWX
โJames Butterfill (@jbutterfill) February 19, 2024
This year has marked a significant increase in market activities by institutional investors following the Bitcoin spot ETF approval by the United States Securities and Exchange Commission (SEC).
Last week, cryptocurrency products saw inflows of $2.4 billion, a record weekly figure. This recent increase brings year-to-date (YTD) inflows to $5.2 billion.
One notable weekly impact on the market is the cryptocurrency rally. total value locked (TVL) and assets under management. Cryptocurrency assets under management reach $67 billion, their highest position since December 2021.
The growth in assets under management is largely due to rising prices and huge institutional inflows this year. The market cap is $1.97 trillion at press time with daily volume of $67 billion.
According to the report, blockchain stocks saw outflows of $167 million as investors took profits.
Bitcoin leads cryptocurrency entries
As expected, Bitcoin dominated the inflows in the last seven days with its institutional products recording 99% of the total figure.
Bitcoin Recorded Inflows of $2.42 Billion Last Week as Spot ETF records an increase in entries. BTC products have raised $3.6 billion this month and an excess of $5 billion this year.
Following the approval of ETFs on January 10, investors continue to increase their exposure to the largest cryptocurrency with an increase bullish momentum.
Bitcoin is trading above $52,000, bringing its AUM to $49 billion, further increasing dominance in the market.
โBitcoin saw over 99% of inflows, although some investors took the opportunity to increase bitcoin short positions, which saw inflows of $5.8 million.โ
Record altcoin inflows
Institutional activity in the cryptocurrency market stemming from Bitcoin's bullish momentum spread to altcoins and gains were recorded in many coins.
Ethereum (ETH) recorded receipts of $21 million, bringing its annual receipts to $34 million. Recently, positive feelings towards the asset have been associated after activities around a Ethereum Spot ETF in the U.S.
As more investment firms file for a spot ETF, commentators predict more inflows into the asset. Trading firms also see the asset as the next big friend of institutional investors due to its profit-generating staking feature.
solana (SUN) saw outflows of $1.6 million due to network downtime last week. This year, Solana has recorded inflows of $4.9 million after a strong run in 2023 that made her one of the institutional favorites.
Avalanche (AVAX), Link of the chain (LINK), and polygon (MATIC) recorded entries of $1 million, $0.9 million, and $0.9 million respectively.
The United States recorded the most institutional inflows based on the activities of the newly approved ETFs. The jurisdiction received 99% of total entries, worth $2.4 billion, ahead of Canada and Europe.
โThis represents a significant acceleration in net inflows, spread widely across multiple providers, indicating growing interest in spot ETFs. At the same time, capital outflows from established issuers have declined dramatically.โ
Switzerland and Germany recorded inflows of $16.7 million and $13.3 million respectively, while Canada recorded net outflows of $0.1 million.
