Cryptocurrency investment products have experienced substantial inflows in recent weeks, attracting a record $882 million last week. This surge in demand comes as global crypto funds approach all-time high asset levels. According to CoinShares data, US cryptocurrency ETFs reached a record $62.9 billion in cumulative net inflows since their launch in January 2024, surpassing the previous peak of $61.6 billion set in February. This strong investor confidence has pushed global crypto assets under management (AUM) to nearly $173 billion, just 2.5% below the record $173.3 billion reached at the end of January.
However, inflows have slowed compared to earlier weeks, with a recent $882 million influx representing a cooldown from the beginning-of-May’s peak of $2 billion and April’s $3.4 billion surge. Despite this slight decline, Bitcoin (BTC) remained dominant, attracting $867 million in inflows last week and contributing to a YTD total of $6.6 billion. Ethereum (ETH) investment products saw modest inflows, totaling just $1.5 million, while the broader altcoin sector experienced varying results. Sui (SUI) led the pack with significant inflows at $11.7 million, while Solana (SOL) recorded outflows for the first time this month.
BlackRock’s iShares products continued to dominate the market, attracting a further $1 billion in inflows last week. While Grayscale and Bitwise faced outflows, Fidelity and ARK witnessed positive trends with gains of $62 million and $46 million, respectively.
These sustained inflows are primarily fueled by investor sentiment driven by recent global macroeconomic developments. The rising M2 money supply, as well as the potential impact of Bitcoin’s use as a strategic reserve asset in various US states, have contributed to this bullish trend. The cryptocurrency market has also benefitted from the rally in prices since January, with Bitcoin reclaiming the $100,000 mark on May 8th.
Overall, the current positive momentum in the crypto ETP industry suggests a continued strong performance in the near future.