Digital Asset Investment Products Experience $160m Inflows – Largest Since July 2022: CoinShares

Investors have expressed their concerns over the stability of the traditional finance sector, resulting in a sharp increase in digital asset investment.

According to the Digital Asset Fund Flows Weekly Report by Coinshares on March 27, digital asset investment products saw inflows of US$160m, marking the largest inflows since July 2022. This follows a six-week period of outflows totalling US$408m.

The report suggests that the late inflows are due to investors’ growing fears of instability in traditional finance, leading them to turn towards digital assets as a safe haven. The inflows came from various countries, indicating a broad improvement in sentiment towards the asset class. The most notable inflows came from the US, Germany and Canada, amounting to US$69m, US$58m and US$26m, respectively.

Bitcoin was the primary beneficiary, with inflows of US$128m, as some clients expressed for the first time that it is a safe haven. However, not all investors share this view, as short-bitcoin also saw inflows of US$31m. Despite being the investment product with the most inflows this year so far, it has not been the best performing from a price perspective.

Ethereum, on the other hand, suffered outflows of US$5.2m for the third consecutive week, which the report suggests could be due to investor jitters around the Shanghai upgrade expected on April 12th.

A variety of altcoins saw inflows, with Solana, Polygon and XRP being the most notable, with inflows of US$4.8m, US$1.9m and US$1.2m, respectively.

Overall, the report highlights investors’ growing interest in digital assets as they become more cautious about the traditional finance sector. This shift in sentiment could have a significant impact on the market, as investors look for alternative investment opportunities. It remains to be seen whether the trend will continue or if traditional finance will stabilize, causing a shift in investor sentiment.

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