Bitcoin investment products in the United States saw a significant increase in weekly inflows, with $2.9 billion in new assets added. According to CoinShares, a digital asset investment company, a total of $13.2 billion in new capital has flowed into investment products like spot Bitcoin ETFs since the beginning of the year, resulting in $74.61 billion worth of Bitcoin now under custody. Bitcoin products accounted for 97% of the total inflows. CoinShares analyst James Butterfill noted that digital asset investment products experienced record weekly inflows of $2.9 billion, surpassing the previous week’s all-time high of $2.7 billion.
Interestingly, Ether (ETH) and other altcoin investment products have not been as popular among investors, with their combined year-to-date inflows representing only a small fraction of the total inflows into Bitcoin. Despite the record ETF inflow, the price of Bitcoin has dropped by 7% in the past week and currently trades at $67,418.
Outside of the United States, crypto exchange products have seen record outflows, with investors withdrawing $738 million from Bitcoin exchange-traded products on German, Canadian, and Swedish exchanges. Some of these funds were redirected to their US counterparts. Compared to management fees of over 1% per year, US Bitcoin ETFs charge as little as 0% on a portion of their inflows. Since receiving approval from the Securities and Exchange Commission in January, US Bitcoin ETFs have captured more than 80% of the spot Bitcoin ETF market share.
The popularity of Bitcoin ETFs has prompted regulators like the UK’s Financial Conduct Authority (FCA) and Hong Kong’s Securities and Futures Commission (SFC) to adopt a more flexible approach towards such products. The FCA announced on March 11 that it would not object to requests from Recognised Investment Exchanges (RIEs) to create a UK listed market segment for cryptoasset-backed Exchange Traded Notes. Similarly, the SFC received its first spot Bitcoin ETF application on January 29.
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