Crypto Investment Funds Record Inflows And Filing Reveals New Purchasers

Crypto Investment Funds Record Inflows And Filing Reveals New Purchasers

In the week that ended on May 6th, inflows of about $130 billion were recorded in crypto investment products.

Data from CoinShares shows that this was a reversal from a streak of outflows that lasted for about five weeks.

The report

On May 13th, CoinShares published its report called ‘Digital Asset Fund Flows Weekly’ in which it shared extensive data.

As per the report, the exposure of institutional investors to digital assets rose, as the inflows in crypto investment products reached $130 billion.

Once more, Bitcoin investment funds recorded the most inflows, as they totaled around $144 million. Investment products saw a decline in weekly trading volumes.

The report revealed that in the week ending May 10th, the volumes dropped to a weekly average of $8 billion from $17 billion.

James Butterfill, the head of research at CoinShares, said that the volumes highlighted less participation of ETF investors in the crypto ecosystem.

He stated that their participation on global trusted exchanges last month had stood at 31% of total volumes. This month, it dropped to 22%.

The data comes after heavy selling and apprehension associated with the US inflation numbers’ impact on the market.

The data

Between May 6th and 10th, institutions invested almost $116.8 million in spot Bitcoin ETFs. This was after outflows from Grayscale’s Bitcoin ETF tapered off.

According to data from Farside Investors, US spot Bitcoin ETFs continued to see inflows of institutional capital.

In fact, on May 6th, they recorded the largest-ever inflow. On May 13th, the spot Bitcoin ETFs that recorded inflows were that of VanEck, Bitwise, and Fidelity.

The biggest gainer was Fidelity’s ETF, as it recorded inflows of about $20.3 million. The report showed regional inflows were from Australia, Hong Kong, Switzerland, Brazil, the United States and Switzerland.

Canada contributed the highest inflows of $20 million. The State of Wisconsin Investment Board also disclosed its spot Bitcoin exposure.

The filing

On May 14th, the Board made a 3F filing to the US Securities and Exchange Commission (SEC). It revealed that in the first quarter of the year, it purchased 94,562 shares of BlackRock’s ETF.

Also called SWIB, the investment board revealed that it also purchased Grayscale’s Bitcoin Trust (GBTC) shares worth $64 million.

MacroScope, the asset manager, said that the board’s filing was a big disclosure for Bitcoin up till now. It is likely that other investment boards will analyze it and may follow suit.

Eric Balchunas, the Bloomberg ETF analyst, said that the interest of the Board in spot Bitcoin ETFs had come sooner than expected.

According to Balchunas, this is undoubtedly good for the market because institutions tend to move in a herd.

It is a significant move into the digital asset market for the Wisconsin Investment Committee. Spot Bitcoin ETFs give exposure to Bitcoin to investors without having to own it directly.

Traditional finance firms may be turning towards crypto investment products sooner than expected. The decision of the Wisconsin Investment Committee may spur them onwards.