Bitcoin Hits 2-Year High, Crypto Fund Inflows Near $600M

CoinShares report highlights a rise in institutional investment in Bitcoin with $598M flowing into crypto products in the past week alone.

According to the most recent report by CoinShares, institutional Bitcoin investment products have contributed $598 million to crypto investment products over the past 7 days.

It is now the fourth week in a row that cryptocurrency exchange-traded products (ETPs) have seen an increase in investment capital. CoinShares’ “Digital Asset Fund Flows Weekly” report on February 26 shows that year-to-date inflows have exceeded $5.7 billion.

Institutional investors are increasing their exposure to Bitcoin through spot Bitcoin exchange-traded funds. James Butterfill, CoinShares Head of Research, attributed the data to significant buying activity during a market recovery led by spot Bitcoin exchange-traded funds (ETF).

“Earlier in the week, total assets under management (AuM) peaked at US$68.3bn, the highest point since December 2021, although still a way off the US$87bn all-time high seen in November 2021.”

Between the 19th and the 23rd of February, institutions invested almost $598 million in the cryptocurrency products offered by BlackRock, ARK Invest, Grayscale, Bitwise, ProShares, Fidelity and 21Shares.

However, the fund outflows experienced a slight slowdown toward the end of the previous week. Approximately $570 million dollars, equivalent to 95% of the total, were invested in Bitcoin funds, making it the cryptocurrency with the most money invested.

After that, Ether (ETH) came in second with a total of $16.8 million inflows. Ripple’s XRP ETPs and Litecoin (LTC) both had inflows of $1 million and $1.1 million respectively, in their respective exchange-traded funds.

In contrast to the general trend, Solana (SOL) had a loss of $3 million dollars as a result of “recent outages,” which may have “impacted sentiment” regarding the layer 1 coin, as stated by CoinShares.

Bitcoin ETFs Record Inflows Despite Grayscale Withdrawals

CoinShares emphasized that current higher-cost spot issuers in the United States had enormous inflows, particularly into the new spot Bitcoin ETF issuers.

This follows the fact that digital asset investment products experienced substantial inflows over the previous week. Investors brought in $609.5 million into cryptocurrency products in the United States, despite Grayscale withdrawing $436 million. 

Brazil and Switzerland recorded minor inflows of $8.2 million and $2.1 million, respectively.  On the other hand, the Canadian market experienced the highest outflows from digital asset investment products, with a loss of $17.8 million.

Sweden followed closely behind with an outflow of $8 million. A rise above $53,000, followed by a modest fall to $50,500, is in combination with an increase in the amount of money available for Bitcoin items.

Bitcoin had exceeded this level and set a new high for the year at $53,650. Bitcoin last traded above $53,600 on December 3, 2021, over two years ago.

At that time, the price had fallen from a high of $57,872 to a low of $16,600 before beginning a downward trend that brought it down to that level in November 2022.