Crypto Investment Products Attract $1.2B Net Inflows Last Week, Extending Inflows to Three Weeks

Digital asset investment funds recorded their third consecutive inflow last week, their highest inflow since July. Data from Coinshares shows that crypto ETPs saw a net inflow of $1.2 billion, marking their third consecutive week of inflows.

According to Coinshares editor James Butterfill, the notable inflow was tied to favorable macroeconomics in the United States. Events like the Federal Reserve System (Fed) reduced the interest rate by 50 basis points (bps), spreading dovish sentiments among investors.

The inflows were also tied to the approval of options contracts for certain US Bitcoin spot ETFs. For instance, on September 20, the US Securities and Exchange Commission (SEC) approved options trading on the BlackRock iShare Bitcoin Trust (IBIT), boosting investor sentiments.

The inflows between September 23rd and 29th saw crypto ETPs’ assets under management (AUM) increase 6.2% to $92.7 billion. However, trading volume on the investment vehicles declined 3.1% week-to-week.

Bitcoin Led Inflow

As expected, Bitcoin led inflows into crypto ETPs last week, with an inflow of  $1.07 billion. Notably, flows into the investment vehicle for the premier asset saw a 73% uptick from last week’s $284 million, signaling renewed traction for the product.

Notably, BlackRock’s IBIT led inflows last week, raking in $594 million through its Bitcoin and Ethereum ETFs. The fund has shown sustainable growth since the launch of the Bitcoin spot ETFs in January and the spot Ethereum ETFs, recording an AUM of $25 billion.

Fidelity and Ark 21 Shares’ ETFs saw net inflows of $206 million and $269 million, respectively, while Grayscale sold $117 million worth of its shares. In total, crypto ETFs have an AUM of $92 billion.

Ethereum Ends Outflow Streak

Meanwhile, Ethereum ETPs saw a break in negative trends last week, with the products recording their first net inflow in five weeks. The funds recorded an inflow of $87 million, reducing their deficit month-to-date to $60 million.

Notably, investment products for other altcoins saw mixed reactions. Investors dumped $4.8 million and $1.2 million from Solana and Binance Coin (BNB) funds, while that of Litecoin and XRP saw inflows of $2 million and $800,000, respectively.

Regional Inflows

The United States led regional inflows into crypto ETPs, recording an inflow of $1.2 billion the past week. This marked a 72.8% increase from the previous week’s $277 million.

Switzerland recorded its highest inflows since mid-2022, with an $84 million positive flow. Canada also saw a net inflow of $1 million after a net outflow of $9.5 million two weeks ago.

Meanwhile, Germany, Brazil, and Sweden recorded a combined outflow of $26 million