Major investors are flocking to bitcoin funds

For several weeks you can read about how more and more money is flowing to bitcoin investment funds, among others. At the end of last month, inflows to crypto exchange funds had not been this large since 2022, but now that limit has also been crossed. Investors were as optimistic last week as they are in 2021.

Bitcoin ETFs are growing again like in 2021

That writes CoinShares, which offers Exchange Traded Funds (ETFs) based on cryptocurrencies. Over the past four weeks, USD 742 million has poured into the surveyed crypto ETFs. That’s the biggest growth since the fourth quarter of 2021, when bitcoin (BTC) made one last rise to a all time high experienced.

If we zoom in on last week, it is a total of $ 137 million inflows. That is not as much as this year’s record, which we saw four weeks ago with a weekly amount of $ 199 million. That was right after BlackRock filed its application for a spot bitcoin ETF.

As almost always, Bitcoin benefited the most from the growth last week, with almost $140 million going to BTC. That’s 99% of the total. Meanwhile, ethereum (ETH) shrank by $1.6 million. The funds that are short on bitcoin and therefore aim for a falling bitcoin price saw $ 3.2 million leave.

Crypto ETFs haven for investors

North America was home to most of this money. $109 million came from the United States and $28 million from Canada. Investors in Europe have hardly changed their positions.

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CoinShares calls this time specifically the ‘CoinShares Digital Securities Limited’ fund. These are funds where the U.S. Securities and Exchange Commission (SEC) believes the underlying cryptocurrencies are, in fact, unregistered securities. Investors are apparently still not a fan of these coins, as this fund has shrunk by $ 1.6 million to a total value of $ 590 million.

Nevertheless, investors are clearly very happy with the researched stock market products. They even seem to see these funds as a haven due to the many problems with policymakers, as the trading volume of these ETFs rose to $ 2.3 billion. That’s almost double the annual average of $1.4 billion. Also, this volume was 11% of all the volume in the crypto market last week, if you add that of regular crypto exchanges. On average, that is only 2%.

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