Record $5.95 Billion Inflows into Global Crypto ETFs
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Amid the U.S. government’s funding fiasco, crypto exchange-traded funds emerged as the week’s undisputed stars, vacuuming up a record $5.95 billion in net inflows,the largest weekly haul ever, per CoinShares analytics. This deluge not only turbocharged Bitcoin’s dash past $123,000 but illuminated a seismic shift: institutional capital viewing digital assets as indispensable amid traditional market wobbles, even as BTC dominance solidified at 60%.
The numbers tell a tale of unbridled enthusiasm. Spot Bitcoin ETFs dominated, snaring $4.2 billion, with Fidelity’s FBTC and Grayscale’s GBTC leading at $1.5 billion and $1.2 billion, respectively. Ethereum ETFs trailed with $1.1 billion, as ETH stabilized near $4,500 post-Dencun upgrade efficiencies. Multi-asset vehicles from VanEck and WisdomTree rounded out the pack, absorbing $650 million in diversified bets. Compared to the prior week’s $2.4 billion, this 148% jump signals a maturation point: crypto ETFs now rival gold funds’ $6 billion monthly averages.
Timing was everything. The inflows crested as the shutdown idled key BLS reports, amplifying uncertainty and driving allocations to “uncorrelated” assets. Pension giants like CalPERS disclosed a 2% portfolio tilt to BTC ETFs, while sovereign funds from Norway and Singapore hinted at 1% probes. “This is the flywheel accelerating: liquidity begets price, price begets more liquidity,” enthused ARK Invest’s Cathie Wood on Squawk Box, her firm’s ARKB ETF swelling by $500 million to $18 billion AUM.
Beneath BTC’s shadow, altcoin signals flickered optimistically. While dominance hit 60%,evoking 2021’s bull zenith,the TOTAL3 index’s bullish MACD crossover hinted at a brewing altseason, potentially inflating market caps by 200%. Solana’s ETF filings and TRON’s DeFi surge siphoned side inflows, with SOL ETFs netting $200 million on speed upgrade buzz.
Critics, however, flag perils. Concentration looms large: the top five products command 75% of flows, per Bloomberg Intelligence, risking herding stampedes. Tax ambiguities, delayed by the shutdown, irk advisors, and ESG pushback on proof-of-work energy lingers. Still, trading metrics dazzle,daily volumes topped $160 billion, dwarfing Nasdaq’s crypto futures.
Globally, the wave crested: Europe’s MiCA-compliant ETFs added €1.2 billion, Asia’s Hong Kong approvals unlocked $800 million. JPMorgan now projects $250 billion in total AUM by 2027, eclipsing silver ETFs. As private payrolls underwhelmed at 98,000 jobs, decoupling from stocks’ 1% weekly lift, ETFs shine as a volatility buffer. “Crypto’s no longer the wild west; it’s the new Wall Street,” Wood posited. With BTC eyeing $150,000, these inflows aren’t a blip,they’re the blueprint for finance’s tokenized tomorrow.
