Crypto fund inflows hit $43 million, marking 11-week streak totaling $1.8 billion

Crypto fund inflows hit  million, marking 11-week streak totaling .8 billion
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Crypto fund inflows at asset managers such as 21Shares, Bitwise, CoinShares, Grayscale and ProShares added another $43 million last week, marking an 11-week streak of $1.8 billion, according to CoinShares’ latest report.

Bitcoin BTC -0.97% -based funds remained the primary focus, with $20 million worth of inflows last week adding to its $1.7 billion year-to-date. 

However, the total inflows represent a substantial decline from the $176 million and $346 million witnessed during the two prior weeks, respectively.

Ether investment products continued their turnaround, witnessing inflows of $10 million and adding to a six-week streak that has seen year-to-date outflows of $125 million recover to $19 million of inflows.

Solana and avalanche-based funds also remained “firm favorites” among investors, Butterfill said, adding inflows of $3 million and $2 million, respectively.

Regionally, Europe dominated, reporting inflows of $43 million. The United States registered inflows of $14 million, but half were directed toward short positions. Hong Kong was again the principal outlier, witnessing a second week of outflows at $8 million. Brazil also saw $4.6 million worth of outflows.

Weekly crypto asset flows. Image: CoinShares

Short bitcoin positions ramp up

Notably, there was also a significant $8.6 million increase in short bitcoin position inflows due to recent price appreciation and perceived downside risks, CoinShares Head of Research James Butterfill wrote — more than double the prior week’s short inflows.

Some of those risks seemed to present themselves earlier today, resulting in the liquidation of more than $94 million in bitcoin positions on centralized exchanges, with the majority ($85 million) being longs. This contributed to a total of $360 million in liquidations across various platforms, according to CoinGlass data, as bitcoin fell as much as 10% on some exchanges before rebounding. Bitcoin is currently trading for around $42,364, according to The Block’s price data.

Blockchain equities witness record inflows as stocks surge

Blockchain equities also continued an eight-week streak, registering their largest weekly inflows on record at $126 million. 

Last week, Bitcoin mining firms Bitfarms and Core Scientific surged 46.2% and 43.5%, respectively, with Argo Blockchain (31%) and Terawulf (20%) also posting significant gains. Not every miner fared the same, though. Cipher Mining faced a loss of 4.3% over the week, while Hut 8’s stock fell 3.9%.

Coinbase and MicroStrategy stock underperformed bitcoin, rising 1.5% and 5.1%, respectively, compared to bitcoin’s 6.6% gain. Bitcoin mining hardware manufacturers Canaan had a tougher week, sliding 19%, joining Galaxy (-1.62%) and Bakkt (-3.80%) as some of the only crypto-related stocks to lose value last week.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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