Bitcoin-backed funds based in the U.S. attracted the majority of the $598 million in inflows into digital asset investment products last week.
Crypto investment vehicles have experienced their fourth consecutive week of inflows, with total inflows for the year surpassing $5.7 billion. Despite this, 2024’s assets under management (AUM) stand at approximately 55% of 2021’s figures, which marked a record year for digital asset product inflows during the peak of the previous crypto bull cycle.
According to a report from CoinShares, the U.S. remained the leader in regional inflows, driven by strong demand for spot Bitcoin (BTC) ETFs. However, overall numbers were dampened by outflows from Grayscale. While digital assets funds in the U.S. received $610 million in inflows, Grayscale’s GBTC experienced outflows of $436 million.
Other countries such as Brazil, Switzerland, and Australia also contributed to non-American inflows into digital asset products. Ethereum led the inflows into altcoin funds with $17 million, while blockchain equities faced skepticism, with investors withdrawing $81 million.
BlackRock and Fidelity Bitcoin ETFs Outperform Competitors
CoinShares emphasized the significant impact of spot Bitcoin ETFs, which have consistently attracted inflows since their introduction on January 11th. Among the issuers, BlackRock and Fidelity stand out as leaders in the market, surpassing Grayscale in terms of AUM.
Although BlackRock and Fidelity have not yet reached Grayscale’s AUM levels, they have collectively accumulated over $10 billion in less than three months. Their ETFs were among the fastest to reach $1 billion in AUM after launch, indicating strong interest from Wall Street investors.
Analysts anticipate that sustained demand for Bitcoin ETFs could drive the cryptocurrency towards a parabolic price increase. Thomas J. Lee, co-founder of Fundstrat, predicts that Bitcoin could reach $150,000 by December, while Matrixport forecasts a $63,000 Bitcoin by March. These projections would bring Bitcoin within 10% of its previous all-time high.
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