Institutional Investors Boost Crypto Investments by $882 Million Worldwide Last Week

Interest in digital assets among institutional investors is increasing, as crypto investment products garnered $882 million in inflows last week. This development, highlighted by recent statistics from CoinShares, represents the fourth consecutive week of positive inflows.

This year, total investments in digital assets have reached $6.7 billion, nearing the previous high of $7.3 billion achieved in February.

James Butterfill, CoinShares’ research head, explained that the market rally is influenced by broader economic conditions. He pointed out factors such as the increasing global money supply, concerns regarding stagflation in the US, and state-level initiatives recognizing Bitcoin as a strategic reserve are all fueling renewed investor enthusiasm in this asset class.

Recently, New Hampshire and Arizona became the latest US states to enact laws permitting public funds to invest in Bitcoin and select other digital assets. These developments indicate a significant shift, reflecting governments’ growing acknowledgment of Bitcoin as a safeguard within the global financial landscape.

US Bitcoin ETFs see unprecedented cumulative net inflows

The report from CoinShares reveals that US spot Bitcoin ETFs have achieved cumulative net inflows of over $62.9 billion since their inception in January 2024, surpassing the previous record of $61.6 billion set in February.

The strong performance of these ETFs persisted last week, with issuers collectively attracting $867 million in new investments.

BlackRock’s iShares Bitcoin Trust (IBIT) has led the way, enjoying 19 consecutive days of positive inflows, accumulating over $5 billion in new funds during this period and outpacing the largest gold-backed ETF in terms of capital raised this year.

Additionally, the robust performance of this ETF segment contributed to US-based crypto investment products securing $840 million. Germany followed with inflows of $44.5 million, while Australia registered $10.2 million.

In contrast, Canada and Hong Kong experienced outflows of $8 million and $4.3 million, respectively.

Sui surpasses Ethereum

In the altcoin market, Sui outperformed others, seeing $11.7 million in new inflows last week. For the year, Sui has attracted a total of $84 million, outpacing Solana’s $76 million.

This accomplishment is significant in light of Ethereum’s impressive 30% surge during the same period, coupled with the successful completion of its much-anticipated Pectra upgrade.

Despite this, ETH-based financial products managed to gain only $1.5 million in net inflows.

Meanwhile, XRP also showed positive movement, attracting $1.4 million in inflows over the week. Its year-to-date total now stands at $258 million.