Home / Markets / Cryptocurrency /  Crypto funds see a record $1.5 billion inflows on first bitcoin ETF in US

NEW DELHI : Digital asset investment products or crypto funds saw inflows totalling $1.47 billion last week, the largest on record, as the first bitcoin-based exchange-traded fund (ETF) called the ProShares Bitcoin Strategy ETF (BITO), started trading in the US, according to digital asset manager CoinShares.

The earlier record was of $1.31 billion inflows, which crypto funds witnessed for the week ended 22 January 2021.

Bitcoin saw 99% of the inflows totalling $1.45 billion last week. Additionally, inflows year-to-date (YTD) now sit at $8 billion, surpassing the record in 2020 of $6.7 billion.

BITO, which started trading on 19 October, became one of the most sought-after funds, as it became the fastest ETF to reach the $1 billion mark in assets under management (AUM) within the two days of its launch.

“The record inflows were a direct result of the US Securities & Exchange Commission allowing a bitcoin ETF investing in futures and the consequent listing of two bitcoin investment products with inflows totalling $1.24 billion," CoinShares wrote in a report.

Another bitcoin futures ETF, from Valkyrie Investments, was launched on Friday.

Ethereum saw outflows for a third consecutive week totalling $1.4 million. CoinShares believes that this is minor profit-taking as the price closes in on an all-time-high.

The world’s second-biggest cryptocurrency, ethereum, was trading 2% higher at $4,226.44 on Tuesday and was still 3% lower compared to its all-time high of $4,361.18, as per Coingecko, a digital currency price and information data platform.

Similarly, bitcoin was trading flat at $63,084.33, but was 6% lower compared to its lifetime high of $67,276.79.

Meanwhile, other altcoins saw inflows with the most notable being solana, cardano and binance, which saw inflows totalling $8.1 million, $5.3 million and $1.8 million respectively, last week.

According to CoinShares, during the week, total assets under management reached a new record of $79.2 billion but closed weekend at $76.7 billion.

In terms of crypto fund providers, the world’s biggest digital asset manager, Grayscale, remained steady with total assets under management (AUM) of $54.64 billion, followed by CoinShares at $5.16 billion and 3iQ with an AUM of $2.77 billion.

ProShares, which launched US’ first bitcoin ETF saw inflows of $1.24 billion during last week.

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