Record-breaking $2.4 billion in weekly investment flows into digital assets fuelled by Bitcoin
Bitcoin led the way as the United States dominated the influx of investments into cryptocurrency-based products from February 12 to February 16, with year-to-date numbers reaching $5.2 billion in 2024.
During this week, digital asset investment vehicles received $2.4 billion, setting a new record for weekly flows and bringing assets under management (AUM) back to levels last seen in December 2021, during the peak of the previous cryptocurrency bull cycle. The total AUM reached a 780-day high of $67 billion.
According to data from CoinShares, Bitcoin (BTC) and the United States accounted for approximately 99% of the week’s inflows, indicating a strong demand for spot cryptocurrency products from issuers such as BlackRock and Fidelity. In less than two months, these two Wall Street giants have accumulated over $10 billion of the approximately $14 billion amassed by new spot Bitcoin ETF providers.
Since January 11, Bitcoin ETFs have attracted $5 billion in net inflows and have seen nearly $2 billion in total value traded. On the other hand, Grayscale’s GBTC has experienced a loss of $7 billion.
The inflows into these spot Bitcoin funds demonstrate that investors are betting on higher prices. However, some traders are also hedging their bets and seeking to generate profits from short-term price downturns. The report shows that investors have added $5.8 million to Bitcoin’s short positions.
Ethereum (ETH) recorded the second-highest fund intake with $21 million in inflows, as investors and speculators eagerly await a decision from the U.S. Securities and Exchange Commission (SEC) regarding spot ETH ETFs. In anticipation of this decision, users on decentralized prediction platform Polymarket have locked $1.3 million in a smart contract titled “Ethereum ETF approved by May 31?”.
Successful issuers of spot Bitcoin ETFs have also submitted bids for a similar product based on the leading blockchain asset in the decentralized finance (defi) space. However, SEC Chair Gary Gensler has suggested that Ethereum ETFs may not follow the same path as Bitcoin ETFs, as decisions on these products have been postponed until May.
Other commissioners, such as Hester Peirce, also known as “crypto mom,” have urged the securities regulator to avoid another controversial situation.
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