Cryptocurrency investment continues to heat up, with funds attracting a record-breaking $2.45 billion last week. This marks the third consecutive week of net inflows, and the total amount invested in crypto funds so far this year has surpassed $5 billion.
Key takeaways:
- Record inflows of $2.45 billion, third consecutive week of net inflows.
- Bitcoin dominates with over 99% of inflows, driven by spot ETFs.
- US accounts for 99% of inflows, highlighting institutional interest.
- AuM reaches 26-month high of $67 billion.
- Ethereum sees positive inflows, Solana experiences outflows.
- GBTC outflows decrease, contributing to positive sentiment.
Bitcoin dominates the scene, accounting for over 99% of the inflows. This surge is largely attributed to the growing popularity of spot Bitcoin ETFs recently launched in the US market. The US alone contributed 99% of the total inflows, highlighting the strong institutional interest in this new investment vehicle.
Bitcoin’s recent price rally to multi-month highs also played a significant role in boosting investor confidence and driving up the total assets under management (AuM) to a 26-month high of $67 billion.
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While Bitcoin takes the spotlight, other cryptocurrencies also saw positive inflows. Ethereum attracted over $21 million, likely fueled by its own 18% price increase. However, Solana experienced a $1.6 million outflow, possibly due to negative sentiment following a recent network outage.
It’s important to note that outflows from Grayscale’s Bitcoin Trust (GBTC), previously a major bearish indicator, have significantly decreased. This, along with profit-taking from blockchain equity ETFs, represents the other main sources of outflows during this period.
Overall, the crypto market is experiencing a significant influx of institutional capital, with Bitcoin spot ETFs driving the charge. While other cryptocurrencies see mixed results, the overall sentiment remains positive, suggesting continued growth in the digital asset space.
