Crypto Funds Near Record $173.3 Billion With $882 Million Inflows
Cryptocurrency investment products have continued to attract significant inflows, with a total of $882 million invested last week. This influx has brought the total assets under management (AUM) in global crypto funds to $169 billion, nearing the historic record of $173.3 billion seen in late January. The past four weeks have seen a total of $6.3 billion in inflows, accounting for 93% of the year-to-date (YTD) total of $6.7 billion.
In the United States, crypto exchange-traded funds (ETFs) have reached a record $62.9 billion in cumulative net inflows since their launch in January 2024. This surpasses the previous high of $61.6 billion set in February. The continued inflow streak has been driven by strong investor demand, with Bitcoin (BTC) dominating the inflows, attracting $867 million in the past week alone. YTD inflows for Bitcoin have reached $6.6 billion, with AUM rising to $146 billion.
Ether (ETH) investment products saw more modest inflows of $1.5 million, with AUM edging up to $12 billion. Among altcoins, Sui (SUI) was the biggest winner, with Sui ETPs seeing $11.7 million of inflows last week. Solana (SOL) was the only altcoin to see outflows, totaling $3.4 million and dragging month-to-date outflows to $2.9 million.
BlackRock’s iShares products have been particularly successful, attracting $1 billion of inflows last week. Year-to-date, BlackRock has attracted $8.1 billion in inflows, significantly exceeding the industry’s total of $6.7 billion. Grayscale and Bitwise continued to see outflows, losing $168 million and $27 million respectively during the past week. Fidelity and ARK reversed previous negative trends, reporting inflows of $62 million and $46 million, respectively.
The ongoing bullish trend in the crypto ETP industry has been driven by a rally in the cryptocurrency markets, with Bitcoin reclaiming $100,000 for the first time since January on May 8. The total crypto market capitalization surged to nearly $3.5 trillion, down 11% from the historic high of $3.9 trillion posted in mid-December 2024. The sharp increase in both prices and inflows is attributed to a combination of factors, including a global rise in M2 money supply, stagflationary risks in the US, and several US states approving Bitcoin as a strategic reserve asset.
Bitcoin traded at $104,407 at the time of publication, slightly down from a historic high above $106,000 posted on Dec. 17, 2024. The latest $882 million of inflows were a notable cooldown from $2 billion seen in the first week of May and $3.4 billion posted in the last week of April. Despite this, the overall trend remains bullish, with investors continuing to show strong interest in crypto ETFs.
