Bitcoin Jumps to 2-year Highs as Crypto Inflows Grow

In the past week, institutional Bitcoin investment products attracted inflows totaling $598 million, as reported by CoinShares.

Crypto exchange-traded products (ETPs) have now experienced four consecutive weeks of inflows.

According to CoinShares' "Digital Asset Fund Flows Weekly" report released on Feb. 26, year-to-date inflows have surpassed $5.7 billion as institutional investors are increasingly embracing Bitcoin exposure through spot Bitcoin ETFs.

James Butterfill, CoinShares' Head of Research, noted, "Earlier in the week, total assets under management (AuM) peaked at US$68.3bn, the highest point since December 2021, although still a way off the US$87bn all-time high seen in November 2021."

This data comes amidst significant buying activity amid a market rebound fueled by spot Bitcoin exchange-traded funds (ETFs).

Institutional investors poured nearly $598 million into crypto products provided by BlackRock, ARK Invest, Grayscale, Bitwise, ProShares, Fidelity, and 21Shares between Feb. 19 and Feb. 23, with outflows briefly slowing toward the end of the week.

Bitcoin funds attracted the largest inflows among cryptocurrencies, with approximately $570 million, accounting for 95% of the total. Ether (ETH) followed, with $16.8 million in inflows.

Litecoin (LTC) and Ripple's XRP ETPs saw inflows of $1 million and $1.1 million, respectively.

Solana (SOL) was an exception to the overall trend, experiencing $3 million in outflows due to "recent outages," which may have affected sentiment surrounding the layer 1 token, according to CoinShares.

Reflecting the increased inflows into digital asset investment products last week, CoinShares noted that higher-cost spot issuers in the United States saw significant inflows, particularly into new spot Bitcoin ETF issuers.

Inflows into U.S.-based crypto products totaled $609.5 million, despite Grayscale experiencing outflows worth $436 million.

Brazil and Switzerland recorded minor inflows of $8.2 million and $2.1 million, respectively, while the Canadian market saw the largest outflows from digital asset investment products, with $17.8 million, followed by Sweden with $8 million in outflows.

The increased inflows into Bitcoin products align with the recent price surge above $53,000, before a slight correction to $50,500.

At the time of publication, BTC had surpassed this level, setting a new year-to-date high at $53,650.

Bitcoin last traded above $53,600 over two years ago, on Dec. 3, 2021, when it fell from a peak of $57,872 before entering a downtrend that brought the price down to $16,600 in November 2022.

Sources:

https://cointelegraph.com/news/bitcoin-hits-2-year-high-as-institutional-investors-inflow-nears-600m

https://blog.coinshares.com/volume-171-digital-asset-fund-flows-weekly-report-0bc3a2259018

https://twitter.com/jbutterfill/status/1762068722435469406

https://twitter.com/CoinSharesCo/status/1762143244266217887

https://www.tradingview.com/x/ry31rpba/