Bitcoin-backed funds from the U.S. ushered most of $598 million in digital asset investment product inflows last week.
Crypto-based investment vehicles have recorded their fourth consecutive week of inflows, totaling over $5.7 billion for the year, putting 2024’s assets under management (AUM) at roughly 55% of 2021’s output, a year of record digital asset product inflows and the peak of crypto’s previous bull cycle.
According to a CoinShares report, the U.S. continued to lead regional inflows with spot Bitcoin (BTC) ETFs drawing huge demand, but exits from Grayscale dampened overall numbers. This area saw $610 million flow into digital assets funds while GBTC shed $436 million in another week of outflows.
Brazil, Switzerland, and Australia trailed the U.S. for flows but accounted for most non-American influx into these digital assets products. Ethereum spearheaded altcoin fund inflows with $17 million, while blockchain equities indicated skepticism, with investors pulling out $81 million.
BlackRock, Fidelity Bitcoin ETFs ahead of competitors
CoinShares highlighted the introduction of spot Bitcoin ETFs as the constant presence in weekly inflows since its Jan. 11 debut. Two issuers, BlackRock and Fidelity, remain heads and shoulders above competitors in this market, including incumbent Grayscale.
While the two do not boast Grayscale’s AUM yet, BlackRock and Fidelity have garnered over $10 billion combined in less than three months. Funds from these two issuers were some of the fastest ETFs to hit $1 billion in AUM after launch, signaling interest from Wall Street investors.
Analysts and experts predict this demand may drive Bitcoin toward a parabolic price run if sustained. Fundstrat co-founder Thomas J. Lee said BTC could reach $150,000 by December this year, and Matrixport sees a $63,000 Bitcoin by March. This would place BTC less than 10% away from its previous all-time high.