Surge in Crypto Fund Inflows as Bitcoin Dominates

By: Isha Das

Digital asset investment products have seen a significant surge in inflows, shattering previous records. The past two weeks witnessed a staggering net flow of $2.9 billion in consecution, setting a new benchmark, according to a report by CoinShares. These inflows hence set a new annual net flow record of $13.2 billion, edging past the whole inflow during the 2021 bull run that totaled to $10.6 billion.

Bitcoin remained the major force behind these inflows. Investments in Bitcoin amounted to $2.896 billion, making up almost the entire total of $2.916 billion for the week. The IBIT ETF by BlackRock saw a substantial inflow of $2.48 billion, leading its closest competitor, Fidelity's FBTC, which pulled in $718 million. The United States led the inflow, drawing $2.95 billion, with Australia and Brazil next, registering $5 million and $23 million, respectively.

In contrast, leading smart contract-enabled blockchain networks witnessed outflows. Ethereum, Solana, and Polygon all experienced outflows, with Ethereum leading at $13.9 million. Remarkably, despite the bullish sentiment surrounding Bitcoin, Short Bitcoin products ended the week with a net positive flow of $26 million, bringing the year-to-date flow to $90 million.