According to a CoinShares Report, Bitcoin And Solana led the way last week in terms of the amount of institutional inflows into digital asset investment products. The report also highlighted an emerging trend among Discover Bitcoin ETFs in the U.S.
Bitcoin records $703 million in inflows
Bitcoin reportedly saw inflows totaling $703 million last week, accounting for 99% of all flows into these investment products. Solana came in a distant second with an inflow of $13 million, outperforming the second largest crypto tokenEthereum, which saw an inflow of $6.4 million.
The spotlight has been on Spot Bitcoin ETFs in the US, with these funds seeing inflows of $721 million last week. These new ETFs are said to have generated an average of $1.9 billion in inflows over the past four weeks, bringing their total inflows since launch to $7.7 billion. In the meantime, GBTC in grayscale has largely contributed to the $6 billion that these funds have recorded as outflows to date.
CoinShares noted that these outflows have subsided in recent weeks, indicating that GBTC investors have cooled on taking profits. The inflows recorded by other Spot Bitcoin ETFs were also the same can overshadow The outflow of GBTC. NewsBTC had that too recently reported how BlackRock’s IBIT GBTC had surpassed in trading volume for the first time.
A drop in trading volume
Last week was a relatively slow week for digital asset investment products in terms of trading volume. The report emphasizes how trading volumes in ETPs (Exchange Traded Products) fell to $8.2 billion, down from last week’s total of $10.6 billion. This drop in trading volume was clearly visible in the numbers the Spot Bitcoin ETFs recorded last week.
Particularly these funds included a daily trading volume of $924 million on February 1 last week, the first time trading volume was below $1 billion. This trend continued the next daywith the Spot Bitcoin ETFs collectively recording a trading volume of $922 million.
Bloomberg analyst Eric Balchunassuggested, however, that there was no cause for concern. He noted in an X post (formerly Twitter) that there is usually a slow decline after a big, hyped launch. What is clear, however, is the fact that these funds have lived up to the hype so far. BlackRock and loyalty alone (the top two issuers according to AuM, excluding Grayscale) now own over 134,358 BTC ($5.7 billion) for their Spot Bitcoin ETFs.
Interestingly enough, their funds also made the top 10 of all ETF inflows in January. This shows impressive interest in the funds and that institutional adoption of the flagship crypto token is on the rise.
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Featured image from Analytics Insight, chart from Tradingview.com
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