Bitcoin Leads $716M Crypto ETP Inflows as Chainlink Hits Record Gains

• Bitcoin dominated inflows at $352 million, reinforcing its position as the leading cryptocurrency investment choice.

• Chainlink achieved a record $52.8 million inflow, representing over 50% of its assets under management and highlighting oracle network growth.

• XRP funds saw $244 million in inflows, driven by regulatory clarity and market momentum, according to CoinShares data.

Crypto ETP inflows hit $716M last week, with Bitcoin leading at $352M. Discover key asset performances and issuer trends boosting AUM to $180B+. Stay informed on crypto investments—explore now for insights.

What Were the Crypto ETP Inflows Last Week?

Crypto ETP inflows totaled $716 million last week, continuing a positive streak after $1 billion in gains the prior week, as detailed in CoinShares’ latest report. This influx followed significant outflows earlier in the month and reflects growing optimism among institutional investors despite macroeconomic challenges like persistent US inflation. The data underscores a rebound in the sector, with total assets under management surpassing $180 billion for the first time since November lows.

Cryptocurrency exchange-traded products have shown resilience, attracting capital even as broader markets navigate uncertainty. CoinShares, a prominent European crypto asset manager, highlighted that daily inflows were steady throughout the week, with only minor dips on Thursday and Friday linked to US economic indicators suggesting ongoing inflationary pressures. James Butterfill, head of research at CoinShares, noted in the report that these patterns indicate a cautious yet bullish sentiment among investors.

The recovery builds on a challenging period where $5.5 billion exited the market over four weeks in November. Despite this progress, assets under management remain below the all-time high of $264 billion, leaving room for further expansion as adoption grows. This week’s performance demonstrates how crypto ETPs are increasingly viewed as viable alternatives to traditional investments, particularly in volatile economic times.

Which Assets Led the Crypto ETP Inflows?

Bitcoin emerged as the frontrunner in crypto ETP inflows, drawing $352 million and solidifying its role as the cornerstone of digital asset portfolios. XRP followed closely with $244 million, benefiting from favorable market conditions and regulatory developments that have boosted confidence in the token.

Chainlink posted a standout performance, securing a record $52.8 million in inflows that accounted for 54% of its total assets under management. This surge points to heightened interest in Chainlink’s oracle services, which connect smart contracts with real-world data, essential for decentralized finance applications. Ether funds recorded more modest gains of $39 million, while short Bitcoin products experienced $19 million in outflows, suggesting a shift away from bearish positions.

Weekly crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares

These asset-specific trends, per CoinShares analysis, illustrate diverse investor strategies. Bitcoin’s dominance reflects its status as a store of value, while altcoins like XRP and Chainlink gain from niche utilities. Overall, the distribution of inflows highlights a maturing market where targeted investments are driving sector-wide growth.

Geographically, inflows were widespread, with the United States leading at $483 million, followed by Germany at $97 million and Canada at $80.7 million. This global participation underscores the borderless appeal of crypto ETPs. In contrast, Sweden reported $5.6 million in outflows, contributing to its year-to-date total of $836 million in exits, the highest globally.

ProShares Tops Inflows Among Issuers

Shifting focus to issuers, ProShares captured the lion’s share of inflows with $210 million, demonstrating strong product appeal amid rising demand. Conversely, BlackRock, the largest issuer by assets under management, faced $105 million in outflows, possibly due to portfolio rebalancing by investors.

Other notable players like ARK Invest and Grayscale Investments also saw redemptions, with $78 million and $7 million outflows respectively. These movements, as outlined in the CoinShares report, reveal varied performance across the issuer landscape. ProShares’ success may stem from its innovative ETF structures that resonate with retail and institutional audiences alike.

Weekly crypto ETP flows by issuer as of Friday (in millions of US dollars). Source: CoinShares

James Butterfill emphasized that while outflows from major issuers like BlackRock and ARK indicate selective investor behavior, the net positive inflows signal underlying strength. CoinShares’ data, drawn from a comprehensive tracking of global ETPs, provides a reliable benchmark for understanding these dynamics. As the market evolves, issuer competition is likely to intensify, benefiting end-users with more options and potentially lower costs.

The broader context of crypto ETPs involves their role in democratizing access to cryptocurrencies. Unlike direct holdings on exchanges, ETPs offer regulated exposure, appealing to traditional finance participants. Last week’s inflows, totaling over $1.7 billion across two weeks, represent a 8% rebound from recent lows, positioning the sector for sustained growth.

Inflationary pressures mentioned in the report continue to influence decisions, with investors viewing Bitcoin as an inflation hedge. This aligns with historical patterns where economic uncertainty drives capital toward decentralized assets. CoinShares’ insights, based on real-time data aggregation, affirm the sector’s maturation and its integration into mainstream portfolios.

Frequently Asked Questions

What Factors Drove the Record Inflows for Chainlink ETPs?

Chainlink ETPs saw record inflows of $52.8 million last week, representing 54% of assets under management, primarily due to increased adoption of its oracle technology in DeFi protocols. CoinShares attributes this to growing demand for reliable data feeds in blockchain applications, with no signs of slowing momentum in the ecosystem.

How Do Crypto ETP Inflows Compare to Previous Weeks?

Last week’s $716 million in crypto ETP inflows followed a robust $1 billion from the prior week, marking a reversal from $5.5 billion in outflows over four weeks in November. This uptick brings total assets under management to over $180 billion, offering a smoother entry for investors via familiar exchange-traded formats.

Key Takeaways

• Bitcoin’s Leadership: With $352 million in inflows, Bitcoin continues to anchor crypto ETP investments, serving as a primary hedge against economic volatility.
• Altcoin Momentum: XRP and Chainlink’s strong performances, at $244 million and $52.8 million respectively, highlight diversifying opportunities beyond Bitcoin in the ETP space.
• Issuer Dynamics: ProShares’ $210 million gains contrast with outflows from BlackRock and ARK, advising investors to evaluate provider track records for optimal exposure.

Conclusion

The $716 million in crypto ETP inflows last week, led by Bitcoin and featuring record gains for Chainlink, signals a robust recovery in investor sentiment. As total assets under management exceed $180 billion per CoinShares, the sector demonstrates resilience amid inflation concerns. Looking ahead, sustained inflows could propel crypto ETPs toward new highs, encouraging diversified strategies for long-term growth—consider monitoring these trends to capitalize on emerging opportunities.