Global Cryptocurrency Funds Maintain Strong Performance
Global cryptocurrency-based investment funds have maintained a strong performance despite increasing geopolitical uncertainties. Data from CoinShares reveals that these funds saw a net inflow of $1.9 billion last week. This marks the ninth consecutive week of net inflows, bringing the total to $12.9 billion during this period. Since the beginning of the year, the recorded net inflow reached a new high of $13.2 billion. James Butterfill, Head of Research at CoinShares, commented that while geopolitical concerns suppressed risky assets last week, cryptocurrencies showed resilience by attracting inflows alongside gold. The total assets under management (AUM) of these funds rose to $179 billion.
Recovery in Bitcoin Funds, Ethereum’s Record Inflows
$0.000076-based investment products significantly recovered after two weeks of minor outflows. The last week saw a net inflow of $1.3 billion into Bitcoin-based investment products, increasing the AUM to $156.7 billion. A significant part of this inflow originated from spot Bitcoin exchange-traded funds (ETFs) in the United States, which alone attracted a net inflow of $1.37 billion, although small outflows in other countries slightly offset this figure. Short Bitcoin investment products also observed a small net inflow of $3.7 million.
$2,627-based investment products continued to perform positively. Ethereum products attracted a net inflow of $585 million last week, bringing the best performance series since February to $2 billion, which accounts for approximately 14% of the total AUM of $14.9 billion. The spot Ethereum ETFs in the U.S. alone saw a net inflow of $528.2 million. However, funds experienced an outflow of $2.1 million on Friday, ending a 19-day record inflow streak.
XRP-based investment products drew their first net inflow of $11.8 million in three weeks, while Sui-based investment products saw a $3.5 million inflow.
Regional Performance of Cryptocurrency-Based Investment Products
Regionally, the United States led with a net inflow of $1.9 billion. Butterfill noted that investor sentiment was largely positive. Following the U.S., funds in Switzerland, Germany, and Canada saw net inflows of $20.7 million, $39.2 million, and $12.1 million, respectively. Meanwhile, cryptocurrency-based investment products in Hong Kong and Brazil ended the week with net outflows of $56.8 million and $8.5 million, respectively.
Market data indicates that BTC rose by 1.3% over the past week, trading around $107,000, while ETH increased by 5.4%, trading at approximately $2,628. Valentin Fournier, BRN Chief Analyst, stated, “Despite geopolitical risks, the market’s demonstrated strength is encouraging, especially with individual and algorithmic momentum investors stepping back.” However, Fournier added that uncertainty about the timing of expected interest rate cuts, slower asset purchases by central banks, and a weakening of institutional momentum in Ethereum indicate a bumpy road back to record levels.
