Crypto funds soar: unveiling the $1.8B mystery surge

Crypto funds soar: unveiling the $1.8B mystery surge

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by Liza Tanasova

3 years ago


Last week witnessed another surge in crypto fund inflows at major asset managers, including 21Shares, Bitwise, CoinShares, Grayscale, and ProShares, adding an additional $43 million. This marks an impressive 11-week streak, accumulating a total of $1.8 billion, according to the latest report from CoinShares.

Bitcoin-focused funds remained in the spotlight, attracting $20 million in inflows last week, contributing to its year-to-date total of $1.7 billion. Despite this, the overall inflows showed a significant decrease compared to the previous two weeks, which saw $176 million and $346 million, respectively. Ether investment products experienced a positive turnaround, with inflows of $10 million, continuing a six-week streak that reversed year-to-date outflows of $125 million to $19 million in total inflows.

Solana and Avalanche-based funds retained their popularity among investors, with inflows of $3 million and $2 million, respectively, according to James Butterfill, CoinShares Head of Research. In terms of regions, Europe dominated with reported inflows of $43 million, while the United States recorded $14 million in inflows, with half directed towards short positions. Hong Kong witnessed a second consecutive week of outflows, totaling $8 million, and Brazil experienced outflows of $4.6 million.

Notably, there was a significant increase of $8.6 million in short Bitcoin position inflows, more than double the previous week's figure, driven by recent price appreciation and perceived downside risks, as highlighted by James Butterfill. Recent market fluctuations and perceived risks resulted in the liquidation of over $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, with Bitcoin experiencing a temporary 10% dip on some exchanges before rebounding to its current trading value of around $42,364.

Blockchain equities continued their eight-week streak, registering their largest weekly inflows on record at $126 million. Bitcoin mining firms Bitfarms and Core Scientific saw significant gains of 46.2% and 43.5%, respectively, while Argo Blockchain (31%) and Terawulf (20%) also posted notable increases. However, Cipher Mining faced a loss of 4.3%, and Hut 8's stock fell by 3.9%.

Coinbase and MicroStrategy stocks underperformed compared to Bitcoin, rising 1.5% and 5.1%, respectively, in contrast to Bitcoin's 6.6% gain. Bitcoin mining hardware manufacturers Canaan had a challenging week, sliding 19%, joining Galaxy (-1.62%) and Bakkt (-3.80%) as some of the few crypto-related stocks that lost value last week.

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