Crypto Investment Products Reverse 5-Week Outflow Streak, Adding $644 Million in Assets

Cryptocurrency Investment Products Record $644 Million in Inflows, Signaling Shift in Sentiment

Cryptocurrency investment products recorded $644 million in inflows last week, a reversal after five consecutive weeks of shedding assets.

Inflows to Bitcoin exchange-traded funds (ETFs) largely led the shift, followed by flows to Solana, Polygon, and Chainlink investment products, CoinShares Head of Research James Butterfill said in a report.

According to CoinShares’ data, total assets under management for crypto investment products rose 6.3% from their low point on March 10.

“Every day last week recorded inflows… signaling a decisive shift in sentiment toward the asset class,” Butterfill said in the report.

Cryptocurrency funds have recorded massive outflows over the past few weeks as geopolitical and economic uncertainties drive investors away from risk-on assets.

In the U.S., spot Bitcoin ETFs logged outflows totaling $5.4 billion over a period of five weeks ending on March 21—the longest streak of weekly outflows for the funds since they clinched approval to launch in January 2024.

Turnaround in Investor Sentiment

However, investor sentiment rose last week as Federal Reserve Chairman Jerome Powell soothed jittery markets after the U.S. central bank kept interest rates unchanged.

Investors’ cautious optimism has fueled inflows to digital assets investment products.

Investment Flows

Bitcoin ETFs attracted $724 million last week, largely driving the recovery, according to CoinShares’ report.

Solana-based investment products brought in $6.4 million in inflows, while Polygon and Chainlink recorded marginal inflows of $400,000 and $200,000, respectively, the data shows.

Conversely, Ethereum saw the heaviest loss in investments last week, logging $86 million in outflows. Altcoins such as Sui, Polkadot, Tron, and Algorand also saw exits of funds during the same period.

Global Investment Flows

The majority of flows came from the U.S., where $632 million flowed into digital asset investment vehicles. Investors in Switzerland, Germany, and Hong Kong also poured funds into cryptocurrencies, adding $15.9 million, $13.9 million, and $1.2 million, respectively.

Conclusion

The recent inflows in cryptocurrency investment products signal a significant shift in investor sentiment, with Bitcoin ETFs and other digital assets attracting significant attention. As the market continues to evolve, it will be important to monitor the performance of these investment products and the overall cryptocurrency market.

FAQs

Q: What is the current trend in cryptocurrency investment products?
A: The current trend is a shift towards inflows, with $644 million recorded last week.

Q: Which investment products are attracting the most attention?
A: Bitcoin ETFs, Solana-based investment products, and Polygon and Chainlink are among the top performers.

Q: What is driving the shift in investor sentiment?
A: A combination of factors, including the Federal Reserve’s decision to keep interest rates unchanged and the overall market sentiment, are contributing to the shift.

Q: Where are the majority of investment flows coming from?
A: The majority of flows are coming from the U.S., Switzerland, Germany, and Hong Kong.