Following the gradual recovery of Bitcoin observed last week, global cryptocurrency investment products also seem to be certified significant inflow of funds, a significant amount of $1.44 billion was received during the same period.

According to CoinShares, a leading crypto asset manager, the escalate brings the total value of assets so far this year to around $17.8 billion, reflecting growing investor confidence despite recent market declines.

Augment in crypto fund inflows

According to analysis shared by CoinShares in its latest report, last week’s activity was characterized by one of the largest net inflows on record, far exceeding the $10.6 billion accumulated during the entire 2021 bull run.

This significant escalate can largely be attributed to investors taking advantage of recent price declines across a range of cryptocurrencies. Bitcoin-focused funds have dominated the movement, bringing in about $1.35 billion of that total.

This demonstrates the forceful investor interest in the leading cryptocurrency, which continues to dominate the market despite periodic volatility.

Meanwhile, Bitcoin betting products (low for BTC Products) saw a trend reversal, recording a net outflow of $8.6 million – the largest outflow since April.

The change in holdings indicates a change in sentiment, which could be due to more favorable market conditions or could simply involve strategic portfolio changes for huge holders. James Butterfill, head of research at CoinShares, specifically noted:

We believe that price weakness due to the German government’s bitcoin sell-off and a change in sentiment due to lower-than-expected US CPI prompted investors to escalate their positions.

While the escalate in inflows was global, U.S.-based funds were by far the largest recipient at $1.3 billion. However, there were also significant inflows from other parts of the world.

For example, Switzerland saw $36 million raised, while Hong Kong and Canada combined saw over $137 million raised, indicating widespread interest in cryptocurrency investments.

Interestingly, Ethereum-based investment products also saw significant growth, with a $72 million escalate in inflows. Butterfill revealed that this escalate likely occurred “in anticipation of the imminent approval of a spot-based exchange-traded fund (ETF) in the US.”

Gradual Recovery: Bitcoin and Ethereum Market Performance

The inflow of funds seen in the cryptocurrency market last week has seemingly been reflected in the price of Bitcoin and Ethereum, with both assets currently posting noticeable rebounds following the recent correction that saw BTC fall to the $53,000 level and Ethereum below $2,900.

In the past 24 hours alone, Bitcoin has seen a significant rally, increasing in value by 6.1% to reclaim the $63,000 level. At the time of writing, the asset is currently valued at $63,764, which is still down about 13.9% from its March peak above $73,000.

Ethereum also appears to be mirroring BTC’s price performance. The second-largest cryptocurrency by market capitalization is also up 6.4% in the past 24 hours, reaching a current trading price of $3,396.

Featured image created with DALL-E, chart from TradingView