Bitcoin ETF Mania Drives Record Week for Crypto Funds So Far This Year

Demand for the recently approved spot Bitcoin exchange-traded funds (ETFs) doesn’t appear to be going anywhere: Last week alone, investors plugged $2.45 billion into crypto funds—a new record, according to CoinShares. 

The Jersey-based digital asset manager said in a Monday report that the total assets under management of the funds now stands at $67 billion—the highest it’s been since December 2021, in the midst of a bull run. 

CoinShares tracks institutional investor data; the crypto funds it mentions in its report include Grayscale, 21Shares, and ProShares, which all provide services to big investors. 

Now on the list of prominent funds are the 10 spot Bitcoin ETFs trading on the U.S. stock exchanges. 

In January, the Securities and Exchange Securities Commission finally gave the green light to such products, which allow traditional investors to get exposure to cryptocurrencies in a safe and regulated way. 

And the products have been a huge success as investors previously unable to get their hands on Bitcoin in a safe and regulated manner flock to the space. BlackRock, the world’s biggest asset manager, last week experienced the largest inflows, the CoinShares report showed, with its iShares Bitcoin Trust receiving over $1.6 billion. 

Most of the money into crypto funds have been focused on Bitcoin exposure, Coinshares said, as funds tied to the digital assets Avalanche, Chainlink, and Polygon all experienced respective inflows of $1 million or less. 

The price of the largest digital coin by market cap, Bitcoin, now stands at $51,800, having risen by about 4% over a seven-day period.

Edited by Andrew Hayward