Cryptocurrency investment products experienced a turnaround in the week ending May 6, with inflows totaling $130 million, according to CoinShares. The company’s “Digital Asset Fund Flows Weekly” report, published on May 13, revealed that institutional investors increased their exposure to digital assets, resulting in total inflows of $130 million. Once again, Bitcoin (BTC) investment funds accounted for the majority of movement, receiving $144 million in inflows.
The report also highlighted a decrease in weekly trading volumes for investment products, dropping from an average of $17 billion in April to $8 billion in the week ending May 10. CoinShares’ head of research, James Butterfill, attributed this data to heavy selling and uncertainties surrounding U.S. inflation data ahead of the CPI data reading.
Furthermore, institutional capital continued to flow into U.S. spot Bitcoin ETFs, marking the largest-ever inflow since May 6. Fidelity, Bitwise, and VanEck’s spot Bitcoin ETF funds were the only products contributing to the May 13 inflows, with Fidelity’s Bitcoin fund being the highest gainer, receiving $20.3 million in inflows.
The report also revealed that the United States, Switzerland, Hong Kong, Australia, and Brazil experienced regional inflows, while Canada recorded the largest regional outflows, with $20 million.
The increased inflows to crypto investment funds coincided with the State of Wisconsin Investment Board disclosing its exposure to spot Bitcoin investment. In a filing with the SEC on May 14, the Board announced its purchase of 94,562 shares of BlackRock’s iShares Bitcoin Trust (IBIT) and approximately $64 million worth of Grayscale’s Bitcoin Trust (GBTC) shares in the first quarter of the year.
This disclosure by the State of Wisconsin Investment Board is seen as a significant move into the digital asset market and may influence other investment boards to follow suit. Bloomberg’s senior ETF analyst, Eric Balchunas, commented that the Board’s interest in spot Bitcoin ETFs came sooner than expected and could signal growing adoption of crypto investment products among traditional finance firms.
It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment decisions.