Crypto Funds Add $2.2 Billion in a Week, Setting Record YTD Inflows and AUM

Bitcoin Consolidates Above $90K as Funds Surge

Crypto funds continue their winning streak, pulling in $2.2 billion in fresh inflows over the past week, according to CoinShares. Heavyweights like BlackRock, Bitwise, Fidelity, Grayscale, and ProShares played a key role in driving year-to-date (YTD) inflows to an unprecedented $33.5 billion. This surge coincided with Bitcoin smashing past $93,000, pushing the total assets under management (AUM) for these funds to a record $138 billion.

The bullish momentum reflects a mix of favorable monetary conditions and the Republican sweep in the recent U.S. elections, noted CoinShares Head of Research James Butterfill in his latest report. 

Despite this, the week was a tale of two halves. An impressive $3 billion in inflows poured in during the first half, but the latter half saw $866 million in outflows as Bitcoin’s price cooled post all-time highs.

U.S.-based funds continued to dominate, contributing $2.21 billion in net inflows. Other regions also posted gains, albeit on a smaller scale, with Hong Kong pulling in $27 million, Australia $18 million, and Canada $13 million. On the flip side, Sweden and Germany witnessed outflows of $58 million and $6.8 million, respectively, as local investors opted to take profits.

Bitcoin remained the top choice for investors, raking in $1.48 billion in global inflows. Notably, the spike in Bitcoin’s value also drove $49 million into short-Bitcoin products, reflecting a strategic hedge. The U.S. spot Bitcoin ETFs captured $1.8 billion of the week’s inflows, though this was tempered by $640.3 million in outflows towards the end of the week.

Ethereum products, often overshadowed by Bitcoin, saw a resurgence. Net inflows reached $646 million, or 5% of their AUM, marking a significant turnaround. Butterfill attributed this to renewed optimism around Ethereum’s future, spurred by Justin Drake’s Beam Chain upgrade proposal and post-election sentiment. U.S. spot Ethereum ETFs alone drew in $515.3 million, their strongest week since launching in July.

As Bitcoin consolidates above $90,000, analysts remain optimistic. BRN’s Valentin Fournier noted the cryptocurrency’s resilience amid a 40% rally since Trump’s election. With technical indicators pointing to continued accumulation and no immediate reversal in sight, Bitcoin appears poised for its next breakout.

This article has been refined and enhanced by ChatGPT.