Crypto Investment Fund Takes $130M, Records Show New Spot BTC ETF Buyers
CoinShares reported that cryptocurrency investment products inflows reached $130 million in the week ending May 6, reversing a five-week outflow.
According to CoinShares' ‘Digital Asset Fund Flow Weekly Report' published on May 13, institutional investors have increased their exposure to digital assets, with crypto investment products seeing a total flow of $130 million last week.
Bitcoin (BTC) investment funds still took the lion's share, earning $144 million.
Weekly trading volume of investment products fell to $8 billion at the end of May 10 from a weekly average of $17 billion in April.
James Butterfill, head of research at CoinShares, said:
“These volumes show that ETP investors are currently participating less in the crypto ecosystem, representing 22% of the total number of global trusted exchanges compared to 31% last month.”
The data follows a sharp sell-off and uncertainty over US inflation ahead of this week's CPI readings. Between May 6 and May 10, institutions poured nearly $116.8 million into Bitcoin ETFs as withdrawals from grayscale GBTC slowed.
Institutional capital continued to flow into U.S. spot Bitcoin ETFs, posting the highest inflows since May 6, according to data from Farside Investors.
Fidelity, Bitwise and VanEck's spot Bitcoin ETF fund were the only products to contribute to May 13 gains. Fidelity's Bitcoin fund was the top earner of the day, with $20.3 million in revenue.
As shown in the table below, the report revealed that the United States, Switzerland, Hong Kong, Australia and Brazil showed regional water flows. The largest regional migration came from Canada, at $20 million.
The increase in crypto investment funds is linked to the news that the Wisconsin Board of Investments is expanding its exposure to Bitcoin investment.
In a 3F filing with the United States Securities and Exchange Commission (SEC) on May 14, the board disclosed that it purchased 94,562 shares of BlackRock iShares Bitcoin Trust (IBIT) during the first quarter of the year.
Read More: State of Wisconsin Reports $164M Investment in Spot Bitcoin ETF
The Investment Board, also known as SWIB, has announced that it has purchased approximately $64 million worth of Greyscale's Bitcoin Trust (GBTC) shares.
Asset manager Macroscope said the board's proposal for Bitcoin is one of the most closely scrutinized by other investment boards to date, and it is likely to follow.
Eric Balchunas, senior ETF analyst at Bloomberg, said the board's demand for Bitcoin ETFs appears to have come faster than expected.
“Wow, State Pension bought $IBIT in the first quarter. Typically, you don't find these big fish institutions in 13Fs for a year or more (when ETFs get more liquid), but as we've seen, these are no ordinary startups.
Balchunas believes this is a good sign for the market, “Expect more as institutions tend to move in herds.
The announcement marks a significant move by the Wisconsin Investment Committee into the digital asset market at SWIB. Spot Bitcoin ETFs offer investors exposure to Bitcoin without having to directly own the cryptocurrency. This move by the Wisconsin Investment Committee may signal the growing adoption of crypto investment products among traditional financial firms.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
