Bitcoin-backed funds in the U.S. received $598 million last week, mostly from inflows from digital asset investment products.
Cryptocurrency-based investment vehicles have recorded four consecutive weeks of inflows, surpassing the year-to-date total of $5.7 billion, with 2024 assets under management (AUM) reaching approximately 55% of 2021 output, with record inflows of digital asset products in a year and record highs. was recorded. Cryptocurrency’s previous bull cycle.
According to a CoinShares report, the United States continued to lead regional inflows with spot Bitcoin (BTC) ETFs driving huge demand, but exits from Grayscale dampened overall numbers. The region saw $610 million in inflows into digital asset funds, while GBTC recorded another week of outflows of $436 million.
Brazil, Switzerland, and Australia trailed the U.S. in terms of flows but accounted for the majority of non-U.S. inflows for these digital asset products. Ethereum led altcoin inflows with $17 million, while blockchain stocks received a skeptical response with investors pulling out $81 million.
BlackRock Puts Fidelity Bitcoin ETF Ahead of Its Competitors
CoinShares has highlighted the adoption of its spot Bitcoin ETF, with weekly inflows steadily increasing since its debut on January 11th. Two issuers, BlackRock and Fidelity, currently maintain a commanding lead over their competitors in this market, including Grayscale.
While neither company yet boasts Grayscale’s AUM, BlackRock and Fidelity have combined to generate more than $10 billion in revenue in less than three months. Funds from these two issuers were among the fastest ETFs to reach $1 billion in AUM since launch, indicating interest from Wall Street investors.
Analysts and experts predict that if this demand continues, Bitcoin could lead to a parabolic price rise. Thomas J. Lee, co-founder of Fundstrat, said BTC could reach $150,000 by December this year, while Matrixport said Bitcoin could reach $63,000 by March. This leaves BTC less than 10% off its previous all-time high.
