Crypto market participants are investing more funds into digital asset investment vehicles, as seen in the amount of inflows recorded last week.
According to the latest Digital Asset Fund Flows Weekly Report from alternative asset management firm CoinShares, crypto investment products witnessed the second largest weekly net inflows, totaling $1.84 billion in the week ending March 1.
Crypto Funds See $1.84B Inflows
Amid the surge in inflows last week, the trading volumes of digital asset investment products hit a record of more than $30 billion, which at times represented 50% of global bitcoin (BTC) trading volumes on trusted exchanges.
Due to bitcoin’s latest rally, which resulted in a rise in trading volumes and inflows, total assets under management of the investment products sit at $82.6 billion, close to $86 billion, a level last seen during the peak of the last bull cycle in November 2021.
The United States dominated the market in terms of region, with net inflows of $1.88 billion. Investors poured $3.2 billion into the nine spot Bitcoin exchange-traded funds (ETFs) while they withdrew a total of $1.46 billion from Grayscale’s GBTC.
Other regions saw mixed flows, with Germany, Sweden, and Canada recording outflows of $35 million, $32 million, and $23 million, respectively, while Switzerland witnessed inflows of $20 million.
Bitcoin Grabs 94% of Inflows
Regarding crypto networks, Bitcoin grabbed 94% of the inflows, totaling $1.72 billion. At the same time, short traders moved roughly $22 million into short-bitcoin investment products. On the other hand, Ethereum witnessed its most significant weekly inflows since mid-July 2022, amounting to $85 million. However, its current assets under management are almost halfway below the $23.7 billion peak.
Additionally, Polygon recorded inflows of $7.6 million, representing 22% of its assets under management, while Solana witnessed $12 million worth of outflows.
Meanwhile, the rise in crypto fund inflows comes as BTC hits new all-time highs (ATH) against several fiat currencies, including the Chinese yuan, the Japanese yen, the Indian rupee, and the Argentine peso. Cryptocurrencies To Watch reported earlier that the leading digital asset recorded a new high in euro (EUR), setting a peak price of €60,393, smashing the previous ATH of €53,000 set in September 2021.