Global Crypto Funds See Continued Growth

Global crypto funds managed by firms like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares reported a sixth consecutive week of net inflows, adding $2.19 billion, according to CoinShares. This brings the year-to-date total to a record $33.5 billion.

Alongside a significant price surge that saw bitcoin hit new all-time highs above $93,000 on Wednesday, assets under management have risen to $138 billion, as highlighted by CoinShares Head of Research, James Butterfill, in a report on Monday.

Butterfill explained, "This recent surge in activity appears to be driven by a combination of looser monetary policy and the Republican party’s clean sweep in the recent U.S. elections."

However, the week saw contrasting trends, with a strong initial net inflow of $3 billion followed by $866 million in outflows post all-time highs.

U.S.-based funds led the way, hitting $2.21 billion in net weekly inflows, with additional inflows of $27 million, $18 million, and $13 million from Hong Kong, Australia, and Canada, respectively. In contrast, Sweden and Germany experienced net outflows of $58 million and $6.8 million as investors took profits.

Bitcoin products dominated the inflow side, registering $1.48 billion in net inflows globally last week. Despite the all-time high, investors also added $49 million to short-bitcoin investment vehicles.

The U.S. spot bitcoin exchange-traded funds alone recorded $1.8 billion in net inflows, which were later reduced following $640.3 million in outflows on Thursday and Friday, as per data from The Block.

On the Ethereum side, investment products have seemingly broken out of their downturn, achieving $646 million in net inflows globally, likely driven by Justin Drake’s Beam Chain network upgrade proposal and the recent U.S. elections.

U.S. spot Ethereum ETFs accounted for $515.3 million of those inflows — the largest amount since they began trading in July.

Bitcoin Consolidation Above $90,000

Bitcoin is currently priced at $90,535, remaining stable over the last 24 hours and up around 12% over the past week.

"Bitcoin is consolidating above $90,000, a bullish indicator as bearish forces have failed to trigger even minor corrections," stated BRN analyst Valentin Fournier. He added, "This resilience persists despite a 40% rally since Trump's election. Technical indicators suggest ongoing accumulation and potential for a breakout, with no immediate signs of reversal."

Analysts from Bernstein outlined five key catalysts that could help bitcoin reach their 2025 price target of $200,000, including the establishment of a bitcoin strategic reserve and a favorable regulatory environment with a new SEC chair.