Digital-asset investment products attracted a substantial $2.9 billion in funds during the week spanning March 11–15, 2024, surpassing the prior record of $2.7 billion, as reported by CoinShares. Year-to-date, these inflows have reached $13.2 billion, outpacing the total inflows seen in 2021, which amounted to $10.6 billion.
Throughout this period, trading volumes hit $43 billion, marking a record for the previous week and accounting for more than 47% of all Bitcoin volumes worldwide. Additionally, blockchain investments saw a notable turnaround, with inflows of $19 million after six consecutive weeks of outflows.
The United States topped the regional rankings with $2.95 billion in inflows. Hong Kong, Australia and Brazil experienced negligible inflows while Switzerland, Canada, Sweden and Germany experienced outflows totaling $78 million. This distribution of geographic interest highlights the wide range of interest in crypto assets around the world.
Additionally, global Exchange Traded Products (ETPs) surpassed the $100 billion milestone for the first time during the week, although a subsequent market adjustment resulted in a $97 billion settlement.
Bitcoin (BTC) accounted for $2.86 billion in inflows, representing 97% of the year-to-date total. Conversely, short Bitcoin positions reached $26 million for the fifth consecutive week. Notably, leading altcoins experienced outflows, with Solana (SOL), Polygon (MATIC) and Ethereum (ETH) losing $2.7 million, $6.8 million and $14 million, respectively.
Looking back to the week of March 4–8, 2024, cryptocurrency investment products’ capital inflows hit a record $2.7 billion. In the two months prior, total inflows were $10.3 billion, somewhat less than the $10.6 billion total for the year 2021. Of those inflows, $2.6 billion came from Bitcoin.
The cryptocurrency investment landscape is being shaped by regulatory changes, especially in the United States where favorable regulatory approvals and competitive management costs have allowed U.S. spot Bitcoin ETFs to take more than 80% of the spot market share. Internationally, opinions on crypto exchange products have been divided, with significant Bitcoin spot ETF outflows in Canada and Europe. However, regulators throughout the world are starting to reevaluate their positions due to the rising acceptance and popularity of Bitcoin spot ETFs.
Regulatory bodies such as the Financial Conduct Authority (FCA) in the United Kingdom and the Securities and Futures Commission (SFC) in Hong Kong are beginning to soften their approach towards cryptocurrency-backed ETFs and Exchange Traded Notes (ETNs), suggesting a possible global shift in favor of crypto investment products.
The positive momentum that crypto ETFs have brought to the industry is also benefiting other segments of the crypto industry, such as the mining segment in which enterprises such as Riot Blockchain Inc. (NASDAQ: RIOT) operate.
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