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Crypto Market Witnesses Unstoppable Growth as Inflows Cross $1.76 Billion Mark

2 mins
Updated by Geraint Price
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In Brief

  • Crypto inflows have been positive for 10 consecutive weeks, with a total inflow of $1.76 billion, the highest since October 2021.
  • The total AUM of digital asset investment products grew by over 107% in 2023, with the past 10 weeks' inflows contributing 4% to the total AUM.
  • Amid the inflow growth, investors are cautioned to be wary when the Fear and Greed index is in the "Greed" territory, signaling a potential market pullback.
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The money flowing into crypto investment products have been positive for 10 consecutive weeks, with a total inflow of $1.76 billion.

While Bitcoin (BTC) hovers around $42,000, sentiment has been extremely positive. This is evident from the data of digital asset investment products’ inflows.

Crypto Inflows Reach October 2021 Highs

According to data from CoinShares, there were inflows of $176 million in the past week for the digital assets products. BeInCrypto previously explained:

“Crypto Investment vehicles such as exchange-traded products (ETPs) and Trusts are important means for institutional investors and other big investors to get crypto exposure. They prefer digital investment products over direct crypto custody due to regulatory challenges or other accounting-related reasons.”

The screenshot below shows that the inflows have been positive for the past 10 weeks, totaling $1.76 billion. CoinShares explained that the amount is highest since October 2021, when the market was near its peak due to the hype of the Bitcoin Futures exchange-traded fund (ETF).

Read more: Where To Trade Bitcoin Futures: A Comprehensive Guide.

Weekly Crypto Asset Inflows Been Positive 10 Weeks
Weekly Crypto Asset Inflows Have Been Positive For 10 Weeks. Source: CoinShares

Additionally, the total assets under management (AuM) of digital asset investment products grew by over 107% in 2023. Not to mention, the inflows of the past 10 weeks contribute 4% to the total AuM of crypto investment products. 

Time to Practice Caution?

The spectacular growth in inflows comes as markets increasingly turn greedy. Even mainstream media companies such as Bloomberg predicted a Bitcoin supercycle and forecasted a price surge of up to $500,000.

Bitcoin Fear and Greed Index
Bitcoin Fear and Greed Index. Source: Alternative.me

Investors should be extremely cautious when the Fear and Greed index is in the “Greed” territory. Sometimes, the markets may start to pull back when the sentiment is extremely greedy.

An X (Twitter) user, WhaleWire, asked their 500,000 followers to be “very careful.” They wrote:

“Bloomberg is now predicting that this is the start of a new “super cycle” that will push #Bitcoin above $500K.

“When the corrupt mainstream media is pushing out crazy unrealistic targets like this at the peak, you should be very careful. This is a huge red flag.

“These kinds of headlines always happen at the top.”

Read more: What Is the Crypto Fear and Greed Index?

Do you have anything to say about the crypto inflows or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Top crypto platforms in the US | March 2024

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Harsh Notariya
Harsh Notariya excels in delivering SEO-optimized crypto news under tight deadlines. Previously, as a Growth Marketer at Sporty and a Community Consultant at Totality Corp, he significantly boosted community engagement and followers. Harsh also crafted engaging content for top crypto influencer Shivam Chhuneja, blending meme references for an educational yet fun experience. His versatile skills make him a notable figure in crypto journalism.
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