Crypto Fund Inflows Hit $13 Billion, Makes New Record

The influx of capital shattered the previous record of $2.7 billion. The latest week's inflows have pushed year-to-date totals to $13.2 billion, surpassing the total inflows of $10.6 billion recorded in 2021.

In a significant development, capital inflows have surged past the previous record of $2.7 billion, as reported by CoinShares.

The latest influx of funds has pushed year-to-date totals to an impressive $13.2 billion, eclipsing the total inflows of $10.6 billion recorded in 2021.

Surging Trading Volumes and ETP Milestones

Simultaneously, trading volumes for the week soared to $43 billion, marking a record for the previous week and constituting over 47% of the total global volumes of Bitcoin (BTC). Notably, blockchain shares witnessed a notable shift, with inflows reaching $19 million for the first time in six weeks.

During the same period, global ETPs surpassed the significant barrier of $100 billion for the first time. However, a subsequent price correction settled at $97 billion.

Bitcoin Dominance and Altcoin Trends

Bitcoin remains the dominant player in the market, with inflows totaling $2.86 billion last week, representing a staggering 97% of all year-to-date inflows. Meanwhile, short Bitcoin inflows for the year reached $26 million, marking the fifth consecutive week of such activity.

According to Crypto News, leading altcoins experienced capital outflows during the week, with Ethereum (ETH), Solana (SOL), and Polygon (MATIC) witnessing losses of $14 million, $2.7 million, and $6.8 million, respectively.

A Business Insider report states that Bitcoin's value has surged by over 54% since the beginning of this year. The token has garnered significant attention from investors due to the emergence of spot ETF products, which are a simpler means of accessing it.

This surge in demand precedes the upcoming bitcoin halving event, which is anticipated in April. Sandy Kaul, the head of digital asset and industry advisory services at Franklin Templeton, suggests that this scenario could lead to an "explosive set-up" for the cryptocurrency.

The surge in capital inflows comes after a week, from March 4 to March 8, 2024, when inflows into crypto investment products reached an all-time high of $2.7 billion.

Over the past two-plus months, total inflows amounted to $10.3 billion, with Bitcoin playing a pivotal role, accounting for $2.6 billion. Comparatively, experts noted that the total inflow for 2021 stood at $10.6 billion, underscoring the remarkable growth witnessed in recent months.

Photo: Dmytro Demidko/Unsplash

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