Key Points
CoinShares’ recent report indicates that $598 million flowed into crypto investment products from institutional Bitcoin investment products in the past week.
This marks the fourth consecutive week of inflows for crypto exchange-traded products (ETPs).
Increasing Exposure to Bitcoin
The “Digital Asset Fund Flows Weekly” report by CoinShares, published on Feb. 26, reveals that year-to-date inflows have surpassed $5.7 billion.
Institutional investors are increasingly using spot Bitcoin ETFs to gain exposure to Bitcoin.
James Butterfill, Head of Research at CoinShares, noted that total assets under management (AuM) reached a peak of $68.3 billion earlier in the week, the highest since December 2021.
However, this is still significantly lower than the all-time high of $87 billion seen in November 2021.
The surge in inflows coincides with a market recovery driven by spot Bitcoin ETFs.
Between Feb. 19 and Feb. 23, institutions deposited nearly $598 million into crypto products offered by BlackRock, ARK Invest, Grayscale, Bitwise, ProShares, Fidelity, and 21Shares.
However, outflows briefly slowed at the end of last week.
Bitcoin (BTC) funds saw the largest inflows of any cryptocurrency, with approximately $570 million, accounting for 95% of the total.
Ether (ETH) was second, with inflows of $16.8 million.
Litecoin (LTC) and Ripple’s XRP ETPs saw inflows of $1 million and $1.1 million, respectively.
Solana (SOL) was the exception, with $3 million in outflows due to recent outages, which may have affected sentiment around the layer 1 token, according to CoinShares.
The United States saw weekly inflows of $609 million, with high-cost spot issuers seeing substantial inflows, particularly into new spot Bitcoin ETF issuers.
Despite $436 million worth of outflows from Grayscale, inflows into U.S.-based crypto products totalled $609.5 million.
Brazil and Switzerland recorded minor inflows of $8.2 million and $2.1 million, respectively.
The Canadian market, on the other hand, saw the largest outflows from digital asset investment products, losing $17.8 million, followed by Sweden with $8 million in outflows.
The increase in inflows into Bitcoin products corresponds with the recent price rise above $53,000, followed by a slight correction to $50,500.
At the time of publishing, BTC had surpassed this level to set a new year-to-date high at $53,650.
The last time Bitcoin traded above $53,600 was over two years ago, on Dec. 3, 2021, when it fell from a high of $57,872 before beginning a downtrend that took the price to $16,600 in November 2022.
