• Bitcoin leads the crypto market with a significant $663 million investment surge, setting a new yearly record.
• Despite the overall market growth, Ethereum funds face their fourth consecutive week of net outflows, totaling $22.5 million.
• U.S. spot ETFs attract $483 million, showcasing strong investor interest in new trading platforms despite a market slowdown.

Bitcoin has once again proven its mettle by anchoring a significant market uplift. According to a report from Coinshares last week, the cryptocurrency sector witnessed a remarkable inflow of approximately $646 million into institutional crypto products. This surge pushed the year-to-date investments to an unprecedented peak of $13.8 billion, overshadowing the total inflows for the entire year of 2021 by nearly 29%. Despite this impressive achievement, there was a slight deceleration in the inflow pace compared to the previous week’s $862 million.

The bulk of these investments gravitated towards Bitcoin, which alone attracted $663 million last week. This enthusiasm was particularly evident in the reception of U.S.-based Bitcoin spot exchange-traded funds (ETFs), which have been in the spotlight since their approval for trading in early January. These investment vehicles enjoyed a hefty $483 million in inflows, indicating a sustained investor appetite over four net positive days.

However, the narrative took a different turn for Ethereum-linked investment products, which continued their streak of outflows for the fourth week, totaling $22.5 million. On a brighter note, other major altcoins like Solana and Litecoin bucked this trend, recording inflows of $4 million and $4.4 million, respectively, defying the broader negativity.

Moreover, the total assets under management (AuM) for the digital asset sector slightly receded to $94.46 billion, marking a 3.5% fall from the preceding week. This metric serves as a crucial indicator of the funds’ performance and their attractiveness to potential investors. Although the drop in AuM suggests a cooling of market enthusiasm, the overall investment landscape remains robust, underpinned by a solid foundation of investor confidence in Bitcoin and select altcoins.

Significantly, the report from CoinShares highlighted a cooling in the demand for ETFs when compared with the vigorous activity witnessed in early March. Indeed, the volume processed by ETFs experienced a dip to $17.4 billion last week from a high of $43 billion in the initial week of March. This shift underscores the market’s dynamic nature and the fluctuating investor interest across different periods.