Bitcoin, Solana Take Center Stage In $721 Million In Institutional Inflows
According to a CoinShares report, Bitcoin and Solana led the way in the amount of institutional inflows into digital asset investment products last week. The report also highlighted an emerging trend among Spot Bitcoin ETFs in the US.
Bitcoin Records $703 Million In Inflows
Bitcoin is reported to have seen inflows totaling $703 million last week, thereby 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 token, Ethereum, which saw an inflow of $6.4 million.
The spotlight was on Spot Bitcoin ETFs in the US, with these funds seeing an inflow of $721 million last week. These new ETFs are said to have now averaged $1.9 billion in inflows over the last four weeks, bringing their total inflows to $7.7 billion since launch. Meanwhile, Grayscales GBTC has contributed largely to the $6 billion that these funds have recorded as outflows so far.
CoinShares noted that these outflows have slowed in recent weeks, suggesting that GBTC investors have cooled off on taking profits. The inflows recorded by other Spot Bitcoin ETFs have also been able to overshadow GBTCs outflows. NewsBTC had also recently reported how BlackRocks IBIT had surpassed GBTC 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 highlighted how trading volumes in ETPs (Exchange Traded Products) fell to $8.2 billion compared to the prior weeks total of $10.6 billion. This drop in trading volume was well evident in the figures that the Spot Bitcoin ETFs recorded last week.
Notably, these funds recorded a daily trading volume of $924 million on February 1 last week, the first time that the trading volume was under $1 billion. This trend continued the next day, with the Spot Bitcoin ETFs combined recording $922 million in trading volume.
Bloomberg analyst Eric Balchunas, however, suggested that there was no need to be alarmed. He noted in an X (formerly Twitter) post how there is usually a slow decline after a big, hyped launch. What is, however, evident is the fact that these funds have lived up to the hype so far. BlackRock and Fidelity alone (the top two issuers by AuM, excluding Grayscale) now hold over 134,358 BTC ($5.7 billion) for their Spot Bitcoin ETFs.
Interestingly, their funds also made the top 10 of all ETF inflows in January. This shows an impressive interest in the funds and that institutional adoption of the flagship crypto token is on the rise.
Read more: https://www.newsbtc.com/news/bitcoin/bitcoin-solana-721-million-inflows/
Text source: NewsBTC
