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Investor optimism soars with $700 million  crypto inflows amid GBTC rebound

TL;DR

  • Crypto funds bounce back with $700 million inflows, signaling market resilience.
  • GBTC outflows decrease, boosting investor confidence in digital assets.
  • Trading volumes remain strong, accounting for 29% of Bitcoin’s total volume.

Digital-asset investment products experienced a resurgence in inflows, accumulating over $700 million globally in the past week. 

This rebound marks the second-largest weekly influx since the introduction of spot bitcoin ETFs in the United States. A pivotal factor in this trend has been the gradual slowdown of outflows from Grayscale’s converted GBTC fund.

Global crypto funds inflows reach $708 million

Asset managers, including BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, reported a collective return to inflows totaling $708 million globally, according to CoinShares’ latest report. 

These figures represent a significant shift in momentum after two consecutive weeks of outflows. Year-to-date net inflows now stand at $1.6 billion, further solidifying the crypto market’s resilience, with total assets under management reaching $53 billion, as  per data 

Last week’s inflows have not only been the second-largest since the launch of spot bitcoin exchange-traded funds in the U.S. but also since the peak of the bull market in late 2021. The positive trend is particularly notable given the recent bout of outflows. 

The consistent abatement of these outflows from Grayscale’s higher-fee converted spot bitcoin ETF (GBTC) has significantly contributed to the increased inflow.

GBTC outflows decline significantly

Grayscale’s GBTC fund, which had witnessed $2.2 billion in outflows the previous week, recorded a reduced outflow of $927 million in the past week. This substantial decrease in outflow momentum underscores a growing investor confidence in the crypto market. While the outflows from GBTC remain at elevated levels, the downward trend is a reassuring sign for the overall market.

Despite the resurgence in inflows, trading volumes for crypto funds saw a decrease to $8.2 billion from the previous week’s $10.6 billion. Nevertheless, these figures remain considerably higher than the weekly average of $1.5 billion observed in 2023.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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