Market Correction Boosts Interest in Crypto Fund Stocks

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From February 1 to 7, cryptocurrency investment funds saw inflows of $1.3 billion, significantly surpassing the $527 million recorded the previous week, according to CoinShares.

Capital Inflow Growth

The positive trend has continued for the fifth consecutive week. However, amid the market correction, assets under management (AUM) declined to $163 billion, compared to the all-time high of $191 billion. Trading volume remained steady at $20 billion.

Bitcoin-based funds attracted $407 million, down from $486 million the previous week. The share of the first cryptocurrency in such instruments reached 7.1% of its total supply.

U.S. spot Bitcoin ETFs saw weekly inflows of $203.54 million, marking the sixth consecutive week of positive momentum.

Investors also added $0.1 million to funds allowing short positions on Bitcoin, a sharp drop from $3.7 million the previous week.

Ethereum Surpasses Bitcoin in Inflows

As ETH prices fell to around $2,100, Ethereum funds received $793 million in inflows, surpassing Bitcoin-based funds. Just a week earlier, investors had withdrawn $0.3 million from ETH products.

XRP-based funds attracted $21.1 million, up from $14.7 million the previous week.

Products based on Solana and Cardano saw inflows of $11.2 million and $2.6 million, respectively.

Earlier, Bitwise projected that spot Bitcoin ETFs could attract $50 billion in inflows by 2025.

Notably, Bernstein analysts suggest that traditional finance investors are only beginning to explore digital assets.