Inflows into Bitcoin exchange-traded funds (ETFs) hit $1 billion last week, bringing total inflows into digital asset products to a record high so far this year.
The total assets under management for all cryptocurrency funds currently stands at $98.5 billion.
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Posted on May 29, 2024 at 2:01am EST.
Crypto investment products had another strong week in terms of inflows, hitting a record high of $14.9 billion so far this year, according to data from CoinShares.
Latest report CoinShares tracked inflows into digital asset investment vehicles and noted that of the $1.05 billion in inflows last week, $1.01 billion was into Bitcoin-related investment vehicles.
Meanwhile, short Bitcoin contracts saw an outflow of $4.3 million, signaling that investor sentiment has turned positive towards the leading digital asset.
Inflows into Ethereum investment products hit $36 million this week, the biggest week of inflows since March, following the U.S. Securities and Exchange Commission (SEC) approval of a primary application for an Ethereum exchange-traded fund (ETF).
Bitcoin prices are currently hovering around $68,600, while Ethereum is trading at $3,800. The recent price rally has helped boost overall crypto fund assets under management (AUM) to $98.5 billion, according to CoinShares.
Traditional finance is also starting to turn its attention to the digital asset market, especially with the growing momentum of spot crypto ETFs, according to a research report from Wall Street brokerage Bernstein. saw CoinDesk suggested that Bitcoin and Ethereum spot ETFs could become a $250 billion market.
Bernstein analysts predict that crypto funds will see more than $100 billion in inflows over the next two years.
He also noted that if proof-of-stake cryptocurrencies like Ethereum were approved for trading in an ETF, it would have a positive impact on the overall crypto token market.
“This will have positive implications for other blockchain tokens, as they may follow the same lead. (Sol) could benefit,” they said.
