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Crypto fund inflows break $1 billion for 2023, led by bitcoin, ether and solana

Crypto fund inflows break $1 billion for 2023, led by bitcoin, ether and solana

Crypto fund inflows at asset managers such as CoinShares, 21Shares, Bitwise, Grayscale and ProShares broke past $1 billion for the year — adding $293 million to a seven-week run of inflows — according to CoinShares’ latest report.

Year-to-date inflows now stand at $1.14 billion — marking it as the third-highest yearly inflow on record — with total assets under management up 9.6% over the last week and 99% since the beginning of the year, CoinShares’ Head of Research James Butterfill wrote. “At $44.3 billion, total assets under management is now the highest since the major crypto fund failures in May 2022,” he added.

Bitcoin investment products led the surge, registering $240 million of inflows, while short Bitcoin products saw outflows of $7 million — indicative of continued positive sentiment, Butterfill said.

Bitcoin ETPs also made up nearly 20% of total bitcoin trading volume last week, suggesting “ETP investors are participating much more in this rally compared to 2020/21,” he added.

Weekly crypto asset flows. Image: CoinShares.

BlackRock’s Ethereum filings and solana’s 40% move

During a week where BlackRock filed to register an Ethereum Trust entity in Delaware and Nasdaq filed for BlackRock’s proposed spot ether ETF, ether-based products saw their largest inflows since August 2022 — adding $49 million. This follows $17.5 million worth of inflows in the prior week, signifying a turnaround in sentiment, according to Butterfill.

Solana-based funds also witnessed significant inflows of $12.4 million in a week where the crypto asset rose over 40% to peak at around $62, according to The Block’s price data. Solana currently trades around $57. Bitcoin and ether gained approximately 4.5% and 7.6% over the last week and currently trade at $36,693 and $2,042, respectively.

SOL/USD price chart. Image: The Block/TradingView.

Regionally, Canada, the U.S., Germany and Switzerland led the flows — contributing $105.7 million, $81.1 million, $52.9 million and $50.3 million, respectively. Additionally, blockchain equity ETFs saw their largest inflows since July 2022, amounting to $14 million and bringing net flows to a positive $11 million for the year.

theblock.co