Bitcoin's Bull Run Drives Crypto-Fund Inflows To Highest In Two Year, Ether Achieves First Positive Net Flow This Year

As Bitcoin BTC/USD and Ethereum ETH/USD reached their highest levels of the year on Monday, recent data revealed that inflows into digital asset funds hit their peak last week since their inception in October 2021.

What Happened: CoinShares' latest report showed that last week, inflows into cryptocurrency futures-based ETFs managed by firms like CoinShares, Bitwise, Grayscale, ProShares, and 21Shares increased by $176.3 million. This surge brought the total for the past 10 weeks to $1.76 billion.

These inflows represent 4% of the current $46.2 billion in assets under management (AuM) in U.S. futures-based bitcoin ETF products. However, the AuM is still 47% lower than the record high of $86.6 billion in 2021.

Last week, trading volumes, which made up 12% of the total bitcoin trading volume, reached a high of $2.6 billion.

Segment Analysis: By asset type, Bitcoin witnessed a weekly inflow of $132.8 million, taking the year-to-date flows to $1.68 billion. Ethereum followed with $30.8 million of flows, taking its year-to-date inflows to $10 million, which marks the asset’s first time in 2023 that net flows are positive. The prior week reported Ether’s year-to-date outflow of $21 million.

Regionally, Canada leads the inflows with $79 million while Germany and the U.S. follow the list with $ $57 million and $54 million, respectively. However, the Asia region was the only one to witness net outflows year-to-date despite the upbeat in digital asset investment products globally. Hong Kong was leading the Asian country with outflows registered at $15 million.

Also Read: This Country Dominates In Capital Crypto Inflows But Interest Wanes Among Investors

Why Does It Matter: While BlackRock, Fidelity, and Grayscale are among the 13 firms that are awaiting approval from the SEC for spot Bitcoin ETF applications, cryptocurrencies have been rallying. The weekend saw BTC scaling beyond $40,000 for the first time after 19 months.

Separately, data highlighted by Alternative shows that the Crypto Fear & Greed index sees the scale moving higher into the Greed region registering a 74 out of 100, its highest level since November 2021. This is compared to 66 registered in the previous week, 68 last month, 50 in October, and 42 in September.

Price Action: At the time of writing, BTC is trading at $41,780, up 5.5% in the past 24 hours. Ether prices are seen at $2,229, up 2.8% in the past 24 hours. Based on CoinMarketCap data, Bitcoin dominance stands at 53%.

Read Next: Is Crypto The 'Wild Card' Eyeing New Peaks? Bitcoin Currently 39% Lower From 2021 High

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