Weekly inflow of funds into crypto derivatives has approached an all-time high

Bitcoin-based products accounted for 94% of the inflows

04.03.2024 - 15:48

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What’s new? Weekly inflows into crypto derivatives has totaled $1,84 billion, the second-highest result in the entire history of observations, analysts at investment firm CoinShares said in a new report. Trading volumes in cryptocurrency-based investment products also hit a record, exceeding $30 billion between February 26 and March 1.

CoinShares’ report

What else is known? Bitcoin accounted for 94% of inflows, totaling $1,73 billion, although recent price fluctuations have led to another $22 million in short positions in the asset. Total assets under management (AuM) of cryptocurrency investment companies approached a record high of $82,6 billion after the recent run-up in rates. The peak of $86 billion was reached in early November 2021.

Ethereum saw the largest weekly inflow of funds since mid-July 2022, totaling $85 million. Products based on the blockchain’s native token Polygon saw $7,6 million flow into the blockchain. Solana, which became a favorite altcoin of cryptocurrency investors last year, saw an outflow of $12 million.

At the regional level, the US remains the leader with an inflow of $1,88 billion. At the same time, Grayscale continues to record an outflow of funds from its spot bitcoin exchange-traded fund (ETF), which functioned as a trust until January this year: last week it amounted to $1,46 billion. However, this outflow was offset by inflows into new spot BTC ETFs, with these nine funds seeing inflows of $3,2 billion.

In other regions, flows were mixed: Switzerland saw inflows of $20 million, while Sweden, Germany, and Canada saw outflows of $32 million, $35 million and $23 million, respectively.

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