Bitcoin’s price is up big—and that's down to the large amounts of cash hitting crypto funds. But things on that front may slow down soon, fund manager CoinShares says in a new report.
Last week, $646 million entered the major funds focused on digital asset investment, bringing inflows for 2024 so far to their highest level ever: $13.8 billion, the firm reported.
Even though the Grayscale’s Bitcoin Trust (GBTC) continued to deflate—as it has done since its conversion to an exchange-traded fund (ETF) in January—investors still plugged money into BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund.
Bitcoin was the main focus of the inflows, CoinShares added, but the firm noted that investor enthusiasm for the products is “moderating.”
Since the U.S. Securities and Exchange Commission approved 11 Bitcoin ETFs in January, cash has flowed into the popular funds, helping to push the price of the cryptocurrency up significantly.
Grayscale’s GBTC has experienced outflows as investors quickly redeem shares they couldn’t sell previously when the product operated like a closed-end fund. Experts last week told Decrypt that they, like Coinshares, expect the outflows will begin to slow down.
In its report, CoinShares noted that European crypto funds giving investors exposure to digital assets like Solana and Litecoin experienced inflows, while investors pulled cash out of Ethereum funds for the fourth week in a row.
The price of Bitcoin is currently at $71,766, a little below its March all-time high of $73,737.
Edited by Ryan Ozawa.