The latest data from CoinShares reveals that the bitcoin exchange-traded fund (ETF) market experienced record trading volumes and significant net inflows last week, marking a dynamic period for the cryptocurrency investment landscape.
According to CoinShares, assets under management (AUM) in crypto investment products are nearing the peak set in November 2021, demonstrating sustained investor interest in digital assets despite market volatility.
Bitcoin ETF trading volumes surged to unprecedented levels last week, driving substantial inflows into the segment. However, the momentum shifted towards the end of the week, with net inflows turning negative on Friday, largely due to outflows from Grayscale Investments’ Bitcoin ETF Trust (GBTC).
Key highlights of last week’s activity in the bitcoin ETF market include:
Inflows and Outflows: While BlackRock’s iShares Bitcoin ETF (IBIT) and several other funds recorded net inflows totaling approximately $353 million, net outflows from GBTC amounted to $492 million, resulting in a net outflow of $140 million for the segment on Friday.
Overall Weekly Inflows: Despite the Friday outflows, the bitcoin ETF category witnessed the second-highest weekly net inflows on record, totaling about $1.7 billion. This surge in inflows reflects ongoing investor demand for exposure to bitcoin through regulated investment vehicles.
Trading Volumes: Trading volumes for bitcoin ETFs reached an all-time high of approximately $22 billion for the week, with IBIT’s trading volumes consistently exceeding $1 billion per day. The heightened trading activity underscores the growing liquidity and investor participation in the bitcoin ETF market.
Market Outlook: Industry observers are closely monitoring the sustainability of heightened trading volumes to determine whether this represents a new normal for the bitcoin ETF market. The coming weeks will provide valuable insights into the market’s evolving dynamics and investor sentiment.
James Butterfill, Head of Research at CoinShares, commented on the broader crypto investment landscape, noting that Ethereum-focused products also saw significant net inflows, reflecting growing investor interest in alternative cryptocurrencies.
Bitcoin’s price remained strong, hovering around $65,000, while Ethereum experienced a notable increase to approximately $3,500. Overall, crypto products’ assets under management approached $83 billion, signaling robust market activity and investor confidence.