- Year-to-date inflows went into digital asset funds reached $13.13 billion.
- Bitcoin, Solana were high on demand, while Ethereum saw outflows.
Digital asset funds were back to winning ways last week, spearheaded by strong investments into the newly-launched Bitcoin [BTC] spot ETFs in the U.S.
Strong recovery
As per data shared by James Butterfill, Head of Research at crypto asset management firm CoinShares, about $862 million in net inflows was recorded across institutional crypto products
This was a sharp rebound from the $942 million in outflows seen a week earlier.
The latest capital infusion propelled year-to-date (YTD) inflows to $13.13 billion. For context, this was nearly 25% higher than the total inflows recorded in 2021 — the year of the crypto market’s last bull run.
Source: CoinShares
During the week, the total assets under management (AuM) swelled to $98 billion, marking an increase of 11% from the week before.
AUM is an important performance gradient of a fund. The higher the value of AuM, the more investments it tends to attract. AUM depends on the inflows and the market value of the underlying asset.
Last month, the AUM hit $100 billion for the first time in history, as Bitcoin smashed to its all-time high (ATH) of $73,000. However, subsequent price correction caused the AUM to drop to current levels.
Bitcoin remains institutions’ favorite
On expected lines, Bitcoin-linked funds led the charge, pocketing $865 million in inflows last week. With this, total inflows since the beginning of the year rose to an impressive $12.8 billion.
The surge could be attributed to strong demand for U.S.-based spot Bitcoin ETFs, which attracted $860 million in inflows last week.
Robust inflows into new ETFs led by BlackRock’s IBIT helped offset outflows from incumbent issuer Grayscale’s GBTC, which has been bleeding since transitioning to an ETF.
Ethereum loses, Solana gains
On the other hand, funds tied to second-largest cryptocurrency Ethereum [ETH] saw outflows worth $19 million last week. The bearish sentiment likely flowed from lower chances of an ETH ETF approval.
Solana-based investment products witnessed inflows of $6 million last week, spurred by impressive price performance of the native asset SOL.
This news is republished from another source. You can check the original article here