In Brief: Bitcoin and Ethereum ETFs saw record-breaking inflows, reaching $211 billion in total assets managed, as Bitcoin soared past $121,000.
Key Highlights
- Bitcoin and Ethereum ETFs collectively attracted $3.7 billion last week, the second-highest weekly inflow on record, according to CoinShares.
- Bitcoin surged above $121,000, achieving new all-time highs and bringing total crypto-linked fund assets up to $211 billion.
- Bitcoin climbed 15.9% monthly while Ethereum traded above $3,000, remaining 4.6% lower year-over-year despite recent gains.
- U.S. investors dominated inflows at $3.7 billion, contrasting with net outflows from Germany ($85.7 million).
- Bitcoin’s breakout rally appears fundamentally supported by ETF inflows, not excessive leverage, according to Bitfinex analysis.
Global investor interest in cryptocurrency, particularly Bitcoin and Ethereum Exchange-Traded Funds (ETFs), reached unprecedented levels last week. Crypto asset manager CoinShares reported record momentum as Bitcoin surged to new all-time highs above $121,000, pushing total assets managed across all crypto-linked exchange funds to $211 billion. This significant increase resulted from $3.7 billion in ETF inflows, representing the second-highest weekly flow on record.
CoinShares attributed the dominant inflows primarily to U.S. investors. Germany experienced significant net outflows of $85.7 million, while Switzerland and Canada saw inflows of $65.8 million and $17.1 million respectively. Bitcoin gained 2.7% in the past day, maintaining its position above $121,000, reflecting a 15.9% monthly gain and more than doubling its value compared to the same period last summer.
However, Ethereum’s performance shows a notable divergence. Trading above $3,000, ETH gained 2% recently but remains 4.6% lower year-over-year, a stark contrast to Bitcoin’s gains. Bitfinex analysts highlighted that last week’s substantial ETF flows essentially absorbed all selling pressure for Bitcoin, suggesting a fundamentally different rally dynamic.
“Importantly, open interest is climbing alongside price while funding remains balanced,” noted Bitfinex analysts, adding, “This isn’t a speculative surge, the consistency and timing suggested it’s a structural bid.” This analysis suggests the current price increase is rooted in legitimate investment demand, setting a new baseline for price expectations.
While continued strong institutional inflows confirm the momentum behind the rally, analysts caution against complacency. Valentin Fournier from BRN Research emphasized the importance of risk management:
“This ongoing wave of institutional inflows confirms the strong momentum behind the rally. But history shows momentum can quickly reverse once buying pressure weakens—making risk management essential in the days ahead.”
Fournier pointed out that market is approaching price levels where profit-taking could emerge, even as momentum remains strong:
“We maintain an elevated exposure while monitoring for signs of inflow fatigue. We’re prepared to scale back quickly if institutional activity slows.”
These developments underscore a significant shift in the crypto asset class, with institutional investment through regulated finance channels now playing a defining role. However, investors are reminded that, as with any asset class, past performance does not guarantee future results.
