Bitcoin was a pacesetter as the US dominated inflows into crypto-based products between February 12 and 16, with year-to-date numbers reaching $5.2 billion in 2024.
Digital asset investment vehicles took in $2.4 billion weekly, setting a record for weekly inflows and returning assets under management (AUM) to levels last seen in December 2021 at the height of the previous crypto bull cycle . Total assets under management rose to a 780-day high of $67 billion.
CoinShares data showed that Bitcoin (BTC) and the US accounted for about 99% of the week's inflows, a sign of demand for spot crypto products from issuers such as BlackRock and Fidelity. In less than two months, the two Wall Street giants accounted for over $10 billion of the roughly $14 billion amassed by new spot Bitcoin ETF providers.
Bitcoin ETFs have seen a net inflow of $5 billion since Jan. 11 and a total trading value of nearly $2 billion, while Grayscale's GBTC has lost $7 billion.
Bitcoin ETF Flows | Source: CoinShares
Inflows into these spot BTC funds show that investors are betting on higher prices, but some traders are also hedging their bets and looking to make profits from short-term price drops. According to the report, investors increased Bitcoin short positions by $5.8 million.
Ethereum (ETH) saw the second largest inflows with $21 million in inflows as investors and speculators await a decision from the US Securities and Exchange Commission on ETH ETFs. Punters on the decentralized prediction marketplace Polymarket have secured $1.3 million in a smart contract titled “Ethereum ETF approved by May 31?”
Punters bet on Ethereum ETF | Source: Polymarkets
Successful spot BTC ETF issuers have made offers for the same product based on the leading blockchain asset Defi. However, SEC Chairman Gary Gensler has suggested that Ethereum ETFs may not turn out like their Bitcoin counterparts as decisions on these products have been postponed until May.
Other commissioners like Hester Peirce, known as the “crypto mother,” have urged the securities regulator to avoid another debacle.
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