Bitcoin Dominates Crypto Fund Inflows, AuM Reaches $28 Billion

As the price of bitcoin continues to consolidate around recent highs, investors are expanding their positions in funds designed to take advantage of further cryptocurrency appreciation.

Total assets under management (AuM) rose to $28 billion, up 43% from their November 2022 low, crypto investment firm CoinShares says in a new report.

Last week, digital asset investment products saw inflows totaling $117 million, the largest since July 2022, with German institutional investors accounting for nearly half of new investments in the crypto market.

Among all digital assets, Bitcoin tops the inflow tally with a 99% share of total investment. Of this amount, inflows into Bitcoin amounted to $116 million while its assets under management increased by $19.6 billion. Rising bitcoin long positions are generally a bullish sign and could suggest that negative sentiment is near its peak.

Despite the additions to bitcoin-based products, bitcoin short funds saw inflows of almost $4.4 million. The AuM on short-Bitcoin is now at $138 million, well below the all-time high of $186 million.

Breaking down the latest statistics, Coinshares said the aggregated data masks a significant regional polarization of views. In particular, Germany was the center of attention this week, with 40% of all admissions ($46 million), followed by Canada, the United States and Switzerland, which registered 30, 26 and 23 million dollars.

Besides Bitcoin, Ethereum-based crypto investment products saw minor outflows totaling $2.3 million. This compares to December metrics which saw the largest ever inflows into Ethereum short investment products of $14 million. This negative sentiment was the result of renewed uncertainty regarding the Shanghai update, which will enable the withdrawal of staking assets, and FTX ETH hacked assets which total approximately $280 million.

Meanwhile, multi-asset investment products saw outflows for the 9th consecutive week totaling $6.4 million, suggesting investors prefer certain investments. This was evident in altcoins as Solana, Cardano, and Polygon all saw inflows, while Bitcoin Cash, Stellar, and Uniswap all saw minor outflows.

Blockchain stocks saw inflows of over $2.4 million, although scrutiny of the various vendors reveals sentiment remains polarized.

CoinShares is the largest digital asset investment firm in Europe. The company recently changed the trading venue for the company’s shares from Nasdaq First North Growth Market to Nasdaq Stockholm Main Market.

CoinShares said the move provides investors with new ways to gain exposure to the digital asset class. Approval was subject to compliance with customary conditions, including liquidity requirements and registration with the Swedish Financial Supervisory Authority.

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