Cryptocurrency Inflows Surpass $1.5 Billion Since Start of Year

Inflows into cryptocurrency investment products amounted to $708 million from January 27 to February 2, bringing the total since the start of the year to $1.58 billion, according to a report by CoinShares.

A week earlier, analysts recorded an outflow of $499.7 million.

Assets under management increased to $53 billion.

Net inflows into the spot Bitcoin ETF segment since the product’s approval rose to $1.7 billion, with outflows from GBTC ($6 billion) offset by inflows into its competitors ($7.7 billion).

Trading volumes fell from $10.6 billion to $8.2 billion, yet remained significantly above the 2023 average of $1.5 billion.

Investors poured $703 million into Bitcoin-related instruments following an outflow of $478.9 million in the previous reporting period.

Clients withdrew $5.3 million from structures allowing short positions on the leading cryptocurrency, after a $10.6 million inflow the previous week.

Altcoins saw inflows ranging from $0.1 million (XRP) to $13.4 million (Solana), except for Ethereum (-$6.4 million) and Avalanche (-$1.3 million).

Analysts from DecenTrader have warned of potential Bitcoin corrections post-halving.

Previously, former BitMEX CEO Arthur Hayes also suggested that in the short term, the price of digital gold could drop to $35,000 amid “excessive” inflation.