Global Crypto Funds Experience Significant Inflows

Global crypto funds run by asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares registered net inflows of $2.2 billion last week, the largest of the year so far, according to CoinShares.

Prompted by “Trump euphoria” leading up to Inauguration Day and combined with positive crypto price action, the inflows propelled assets under management at the funds to an all-time high of $171 billion, as stated by CoinShares Head of Research, James Butterfill, in a Monday report.

Trading volumes for global exchange-traded products also remained high at $21 billion last week, representing 34% of total bitcoin trading on trusted exchanges, Butterfill noted.

U.S. and Bitcoin-Based Funds Lead

Unsurprisingly, U.S.-based crypto funds led regionally, generating $2.1 billion of the net weekly inflows. Digital asset investment products in Switzerland and Canada also saw net inflows of $88.9 million and $13.4 million, respectively. However, funds in Sweden and Germany experienced net outflows of $14.5 million and $2.4 million, respectively.

Bitcoin-based investment products dominated last week’s net inflows globally, adding $1.9 billion. They remain the best-performing crypto funds this year, clocking $2.7 billion worth of net inflows. The U.S. spot Bitcoin exchange-traded funds accounted for $1.86 billion of the overall net inflows, driven by a strong end to the week.

Ethereum-based funds also witnessed net inflows totaling $246 million, correcting earlier year-to-date outflows. U.S. spot Ethereum ETFs accounted for $212 million of those net inflows last week, according to data compiled by The Block.

XRP investment products benefited from the bullish sentiment, adding a further $31 million to an inflow streak totaling $484 million since mid-November, Butterfill noted, amid the cryptocurrency’s surge to its first all-time high in seven years.