Record amounts for cryptocurrency investors
Cryptocurrency investors attracted a whopping $2 billion in new inflows last week, European investment firm CoinShares reported. Global crypto exchange-traded products (ETPs) saw $5,5 billion in new inflows over the past three weeks, according to CoinShares’ latest weekly report.
With these new inflows, the total assets under management (AUM) of all crypto ETPs globally increased by 3,3%, from $151 billion to $156 billion. While the positive trend has continued for three weeks, the latest weekly inflow of $2 billion was still down 41% from the $3,4 billion of the previous week, a record that marked the third largest inflow for crypto ETPs ever.
Delay in inflows despite rising Bitcoin prices
The decline in crypto ETP inflows coincided with a brief surge in Bitcoin prices. During the week of April 28 to May 2, the price of Bitcoin (BTC) from around $94.300 to a peak of over $97.000, generating a total of $1,8 billion in inflows. However, this number represents a 43% drop from the previous week.
Despite the growing price, bearish investors indicated they were adding to their positions; short-term Bitcoin ETPs saw a notable 300% increase in inflows compared to the previous week, from $1,6 million to $6,4 million. Meanwhile, altcoins such as Ether (ETH) and XRP (XRP) saw inflows of $149 million and $10 million respectively.
Dominance of BlackRock's iShares investors
Data from CoinShares shows that flows into crypto ETPs were heavily concentrated around BlackRock’s iShares products, which saw a whopping $2,7 billion in inflows over the past week. In contrast, other providers such as ARK Invest and Fidelity Investments saw net outflows of $458 million and $201 million respectively.
Additionally, other providers such as Bitwise, Grayscale and ProShares also recorded slight outflows in their crypto ETP products, with totals of $36 million, $31 million and $25 million.
These developments underscore how the dynamics within the crypto investment world are constantly changing, and indicate that investors remain sharp in their choices.
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