Coinspeaker
Crypto Investment Products Register $176M Inflows Last Week
Crypto investment products recorded inflows worth approximately $176 million in the past week. The recent crypto market crash marked a crucial event for several investors who saw it as an opportunity to expand and diversify their funds. The weakness in price became a buying opportunity for these investors, and their decision is reflected in the enormous inflows that digital asset investments have seen.
Crypto Recovers from Market Crash
Before, crypto investment products’ total Assets Under Management (AUM) fell to $75 billion. This dip successfully cleared off over $20 billion in the correction. However, it has recorded a recovery, reaching as high as $85 billion. The sales of exchange-traded products (ETPs) significantly contributed massively to these vast figures and the recovery.
Last week, trading activity in ETPs reached as high as $19 billion, compared to the $14 billion weekly average recorded so far this year. In a somewhat unusual move, all regions recorded inflows, which reflects a generally positive sentiment towards the asset classes, especially after the recent price correction.
As a result, assets like Ethereum boosted the flow as it saw up to $155 million in inflows last week. So far, its year-to-date inflows have reached $862 million.
Some regions with the most notable inflows are the United States, Switzerland, Brazil, and Canada, with $89 million, $20 million, $19 million, and $12.6 million, respectively. Amidst these vast inflows, the US recorded net outflows month-to-date totaling $306 million.
It is worth noting that Ethereum (ETH) is a huge beneficiary of the recent price correction. Beyond the $155 million in inflows last week, its year-to-date inflows have reached $862 million. This figure comes on the heels of the newly launched spot Ethereum ETFs, which have seen significant traction.
Spot Bitcoin and Ethereum ETFs See Recovery
At the beginning of this month, Ethereum ETFs’ net inflow hit $26.7 million, mainly triggered by the significant $89.6 million investment in BlackRock’s iShares Ethereum Trust (ETHA). This coincided with when Grayscale Ethereum Trust (ETHE) saw outflows exceeding the $2 billion mark.
Bitcoin ETFs are doing alright, even though they started the week with outflows. On Tuesday, the product saw a net outflow of $168.4 million. Grayscale’s industry-leading GBTC fund witnessed the highest daily net outflow of $69.12 million. Ark Invest and 21Shares’ ARKB followed closely with $69 million outflows, while Fidelity’s Bitcoin ETF saw $58 million leave the fund.
BlackRock’s IBIT and several other funds remained stagnant with zero net flows. This suggests that most of its investors are more focused on holding their market positions amidst the turbulence. However, spot Bitcoin ETFs had massive inflows towards the week’s final days.
On Friday, Bitcoin ETF daily net inflows reached over $193 million. This resurgence came as a result of a revival in Bitcoin price. Since that time till now, Bitcoin has seen some price fluctuations. At this writing, BTC traded at $58,763.57 with a 3.84% dip in 24 hours.
