Capital Inflows into Crypto Increase for the 10th Consecutive Week

Last week, cryptocurrency products and funds attracted an additional $176 million in investments, marking the 10th consecutive week of capital inflows into the crypto market.

Capital inflows into crypto increase for the 10th consecutive week

According to the latest statistics from CoinShares, the total influx of money into crypto investment products over the past 10 weeks has reached $1.76 billion. This figure represents unprecedented levels not seen since October 2021, a time when numerous Bitcoin futures ETFs were launched in the U.S., propelling BTC to all-time highs.

In the past week alone, cryptocurrency products and funds received an additional $176 million in investments, marking the tenth consecutive week of net capital inflows into this market, albeit showing a slight decline compared to previous reporting periods.

Assets under management (AUM) for digital asset "brain trusts" have continued to rise over the past week, notable among them being CoinShares, Bitwise, Grayscale, ProShares, and 21Shares.

Bitcoin (BTC) remains the market leader, attracting $132.8 million in investments over the past week. After three consecutive weeks of withdrawals, short sellers have returned to short Bitcoin with a mere $3.6 million. Meanwhile, $30.8 million flowed into Ethereum, extending its streak to five consecutive weeks, totaling $134 million.

The top two cryptocurrencies have also recently set new highs for 2023, reaching price levels not seen in the past 18 months. Bitcoin successfully regained the $42,420 mark, marking an over 150% increase year-to-date and setting records since the LUNA-UST crash, amidst the fervor surrounding Bitcoin spot ETFs hotter than ever. Ethereum's rise has been somewhat slower compared to BTC but has still increased by over 85% this year.

Further data shows that other top altcoins such as Solana (SOL), Ripple (XRP), and Cardano (ADA) attracted investments of $4.3 million, $0.5 million, and $0.1 million, respectively. Only Litecoin (LTC) saw withdrawals amounting to $0.2 million.

Regionally, Canada, Germany, and the U.S. accounted for the largest capital inflows, amounting to $79 million, $56.9 million, and $53.5 million, respectively. Conversely, capital flowed out of Hong Kong, totaling $15 million, amid Asia's broader trend of capital outflows since the beginning of the year, contrasting with global trends.

Investment capital flows in crypto from various countries around the world. Source: CoinShares

Inflows and outflows are considered key indicators reflecting the investment appetite of major institutions. Recent capital inflows into crypto have shown signs of resurgence, indicating that the cryptocurrency sector is gradually recovering from a series of collapses involving major players such as FTX and Terra.