Bitcoin-tied investment funds saw $116 million in inflows last week as the flagship cryptocurrency has managed to hold gains and stay firm so far this year.
According to a Monday report by digital investment company CoinShares, digital asset investment products saw $117 million in inflows last week, with Bitcoin accounting for $116 million of that figure. This marks the largest digital asset inflows since July 2022, the report noted.
The strong inflows in Bitcoin-tied investment funds come as the leading cryptocurrency has managed to hold onto its recent gains. Bitcoin is up more than 42% year-to-date, and up by 39% over the past 30 days. The coin is currently trading above the $23,000 mark, a level last seen in mid-August 2022.
Meanwhile, CoinShares revealed that the cumulative asset under management (AuM) of crypto funds has risen to $28 billion, up 43% from their November 2022 lows. The report added:
“Investment product volumes are improving with $1.3 billion traded for the week, up 17% compared to the YTD average, while the broader digital asset market has seen average weekly volumes rise by 11%. Investment products remain only 1.4% of total volumes on trusted exchanges.”
On the other hand, multi-asset investment products saw outflows for the 9th consecutive week amounting to $6.4 million, which is an indication that investors are preferring select investments. “This was evident in altcoins as Solana, Cardano and Polygon all saw inflows, while Bitcoin Cash, Stellar and Uniswap all saw minor outflows,” the report said.
In terms of geography, Germany saw the largest inflows, accounting for 40% or $46 million of all inflows. This was followed by Canada, the United States, and Switzerland, which saw $30 million, $26 million, and $23 million in inflows, respectively.
Fund flows can be a good measure to gauge how institutional investors move their money. Generally, it is safe to assume that strong inflows beget more inflows and could drive up prices. In contrast, strong outflows could lead to falling prices.
A report by CoinShares earlier this month revealed that digital asset inflows reached $433 million last year, the lowest since 2018. Per the report, Bitcoin and multi-asset investment products saw the most robust demand, recording inflows of $287 million and $209 million, respectively.
2023 has been a strong year in terms of adoption for Bitcoin and the broader crypto market. Just last week, the state of New York announced a bill that would allow agencies to accept Bitcoin and some other cryptos as a form of payment for fines, civil penalties, taxes, fees, and other payments charged by the state.