Key Points
The U.S. was the primary driver of the $598 million inflows into digital asset investment products last week, largely due to Bitcoin-backed funds.
Continuing Crypto Investment Inflows
These investment vehicles have experienced inflows for four consecutive weeks, accumulating over $5.7 billion for the year.
This puts 2024’s assets under management (AUM) at about 55% of 2021’s figures, a year that saw record inflows into digital asset products and marked the height of the previous crypto bull cycle.
A report by CoinShares revealed that the U.S. continued to dominate regional inflows.
Spot Bitcoin (BTC) ETFs attracted significant demand, but outflows from Grayscale tempered the overall figures.
In this sector, $610 million flowed into digital asset funds, while GBTC lost $436 million in another week of outflows.
Countries such as Brazil, Switzerland, and Australia followed the U.S. in terms of inflows but accounted for the majority of non-U.S. influx into these digital asset products.
Ethereum (ETH) led the altcoin fund inflows with $17 million, but blockchain equities showed signs of doubt as investors withdrew $81 million.
Spot Bitcoin ETFs: BlackRock and Fidelity Leading the Pack
CoinShares pointed out that spot Bitcoin ETFs have been a consistent factor in weekly inflows since their introduction on January 11.
BlackRock and Fidelity stand out in this market, outpacing competitors, including the established Grayscale.
While BlackRock and Fidelity haven’t yet matched Grayscale’s AUM, they have collected over $10 billion combined in under three months.
These issuers’ funds were among the quickest ETFs to reach $1 billion in AUM post-launch, indicating interest from Wall Street investors.
Experts anticipate that this demand could propel Bitcoin towards a parabolic price increase if it persists.
Fundstrat co-founder Thomas J. Lee predicts that BTC could hit $150,000 by December this year, while Matrixport anticipates a $63,000 Bitcoin by March.
This would put BTC less than 10% below its previous all-time high.
