Investors poured $136 million into digital asset funds last week, of which $133 million was directed into Bitcoin-related products. These funds saw $470 million in inflows over the past three weeks after nine weeks of back-to-back net outflows.
Bitcoin Funds Accounted for 97% of Inflows Last Week
Digital asset investment products saw $136 million in inflows last week, CoinShares noted in the new fund flows report. This is the third consecutive week of inflows for digital asset funds, with $470 million accumulated in net inflows over the three weeks.
Unsurprisingly, Bitcoin-related funds were at the center of the positive investor sentiment, with inflows of $133 million last week, representing 97% of the total amount. Meanwhile, short-bitcoin investment products saw an 11th straight week of outflows, at $1.8 million, suggesting investors still favor the leading cryptocurrency over altcoins.
Ethereum funds saw minor inflows of $2.9 million during the week, although the asset remains in a negative net flows position at -$63 million year-to-date. Still, short-Ethereum products experienced slight outflows of $0.3 million last week.
Spot Bitcoin ETF Filings Raise Investor Optimism
The last three weeks of positive inflows highlight the growing investor optimism around digital assets, offsetting the previous 9 consecutive weeks of outflows. The year-to-date fund flows are strong at $231 million.
The improvements in investor sentiment emerged after BlackRock, the most significant asset manager in the world, filed an application to launch a spot Bitcoin exchange-traded fund (ETF) in mid-June. After the move, several well-known traditional finance (TradFi) institutions followed suit, including WisdomTree, Invesco, Valkyrie, and others.
The string of applications significantly raised hopes that Bitcoin could become a mainstream pick among institutional investors, assuming their filings gain approval from the US Securities and Exchange Commission (SEC). The securities regulator said BlackRock’s filing was inadequate, though the investment giant quickly updated the application with the required details and refiled.
In a recent interview with Fox Business, BlackRock CEO Larry Fink described Bitcoin as an “international asset” that could serve as a hedge against inflation and gold. He also said the “role of crypto is digitizing gold,” adding that BlackRock aims to make cryptocurrencies more democratized and cheaper for investors.
This article originally appeared on The Tokenist
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