A WAVE of investor interest is driving billions of US dollars into cryptocurrency assets this year, pushing inflows to record-breaking levels, according to CoinShares International.

A record US$2.7 billion flowed into crypto assets last week, according to a Monday (Mar 11) report from the digital asset manager and crypto research firm. The bulk of the flows went towards Bitcoin, reads the report. Earlier on Monday, Bitcoin topped US$72,000 for the first time ever, and has now notched six straight days of gains.

A combination of bullish events is helping drive the surge in inflows. These include the US Securities and Exchange Commission’s approval of spot Bitcoin exchange-traded funds (ETFs) in January and the upcoming halving event in April, which will cut the supply of new Bitcoin in half.

Since the start of this year, about US$10.3 billion has flowed into crypto assets, close to the US$10.6 billion of inflows recorded by the market over the entire course of 2021, according to the report by CoinShares’ head of research, James Butterfill. That was also the year Bitcoin hit its last all-time high near US$69,000.

Spot Bitcoin ETF offerings, including from BlackRock and Fidelity Investments, have attracted a majority of the inflows to crypto markets in 2024. They have also helped offset outsized outflows from Grayscale Investments’ Bitcoin ETF since it is conversion from a trust in January.

But as Bitcoin keeps setting new records, some investors appear to be hedging against a correction.

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“Despite recent price rises, the inflows into short Bitcoin continue” wrote Butterfill, pointing to a further US$11 million seen last week. BLOOMBERG