Digital asset investment products globally experienced a record-breaking trading surge last week, leading to a staggering $30 billion in trading volume. This record volume was mainly generated by U.S.-based spot Bitcoin exchange-traded funds (ETFs), as revealed by data from CoinShares. Some of the key asset managers offering these investment products include prominent firms like Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares, and 21Shares.
As per CoinShares’ Head of Research, James Butterfill, at some points the trading volumes in these digital investment products accounted for 50% of global Bitcoin daily trading volumes from trusted exchanges. The U.S. spot Bitcoin ETFs alone showed an impressive weekly trading volume that hit a record of $22.3 billion. Moreover, Wednesday marked a significant milestone for these ETFs, generating the highest daily volume since their launch, totalling over $7.6 billion.
In addition to the impressive trading volumes, crypto funds recorded their second-largest weekly net inflows, accumulating a hefty $1.84 billion. A majority of these inflows were directed towards Bitcoin investment products, with 94% amounting to $1.72 billion. Despite a few setbacks like the almost $1.5 billion outflows from Grayscale’s higher fee fund, the U.S. spot Bitcoin ETFs managed to stay ahead, pulling in a significant $3.2 billion in weekly inflows.
Butterfill pointed out that despite Bitcoin’s price increase by 20%, short investors continued to flow in, injecting a further $22 million into short-Bitcoin investment products. Meanwhile, other regions showed mixed results with inflows and outflows.
Wrapping up the week, total assets under management neared an all-time high of $82.6 billion, inching towards the early November peak of $86 billion. Meanwhile, Ether-based investment products saw their largest weekly inflows since July 2022 at $85 million, while Solana products marked outflows of $12 million for the third consecutive week.