Fourth consecutive week of inflows for crypto products

Bitcoin once again captures the attention of institutional investors, with crypto products attracting $1.2 billion in one week. This return of capital does not resemble a simple technical rebound. It mainly shows that large investors are taking positions again, as bitcoin trades at its highest levels since early February.

Bitcoin takes back control of crypto flows

The crypto market has just completed a fourth positive week for ETPs. Over this period, cumulative inflows reach about $3.9 billion. This is more than the previous streak observed in March, which ended around $2.9 billion.

The signal is clear despite the risk of seeing bitcoin back to $57,000. Capital does not return by chance. It comes back when bitcoin passes again above price zones monitored by the markets. CoinShares already indicated that investment products in digital assets attracted nearly $1 billion over the week, despite a still tense macroeconomic context.

Total assets under management now reach $155 billion. This level had not been observed since February 1st. This gives the current movement a different color. Bitcoin is not rising alone. It pulls with it a visible reconstruction of institutional appetite.

US Bitcoin ETFs remain the main driver

Bitcoin largely dominates capital inflows. It captures $932.5 million over the week, that is the bulk of crypto flows. Since the beginning of the year, bitcoin-related products now show about $4 billion in net inflows.

A large part of this dynamic comes from spot Bitcoin ETFs listed in the United States. According to data reported by SoSoValue, these ETFs recorded $824 million in net inflows in the week of April 20 to 24. It is also their fourth consecutive week in the green.

BlackRock remains the heavyweight of this sequence. Its IBIT ETF would have attracted $733 million over the week, ahead of ARK 21Shares. Grayscale, on the other hand, continues to suffer outflows on GBTC. The market does not buy all products in the same way. It sorts. And this sorting favors the most liquid vehicles, the least expensive and the easiest to integrate into institutional portfolios.

Ethereum follows, but BTC keeps the advantage

Ether also progresses. Ethereum-related ETPs record $192 million in inflows, confirming a third consecutive week above $190 million. Since the beginning of the year, flows on Ether rise to $390 million.

This recovery is important, but it remains secondary. The market uses Ethereum as complementary exposure. Bitcoin, itself, remains the main entry point. It is the first asset institutions buy when confidence returns. It is also the first asset they use to test their crypto risk appetite.

Short Bitcoin products nevertheless attract $16.5 million. It is not huge, but it is not neutral. It shows that part of the market is still hedging. In other words, investors buy the rebound, but some keep an umbrella open. Caution remains, especially before the FOMC decision on April 28 and 29.

The movement is not limited to crypto ETPs. Blockchain equity ETFs also record record demand. CoinShares notes that blockchain equities have attracted $615 million since the beginning of the month, a monthly record, with $289 million arriving in just one week.

This strategy could appeal to institutions still constrained by their internal rules. They cannot always hold bitcoin directly. However, they can take positions via equities related to the sector. The crypto market thus expands on its margins and often, it is precisely these margins that foreshadow the next movements. Meanwhile, Michael Saylor does not hold back and already announces a new purchase.