Digital Asset Investment Products Garnered $346M in Weekly Inflows, Marking a 9-Week High: CoinShares

In the ever-evolving landscape of digital assets, the investment sphere has witnessed a remarkable surge in inflows. The latest Digital Asset Fund Flows Weekly Report by CoinShares revealed staggering numbers, indicating a significant upswing in investor sentiment and activity.

Last week, digital asset investment products experienced an unprecedented influx of $346 million, marking the largest weekly inflows observed over a stretch of nine consecutive weeks. This surge in investment, reflecting a palpable enthusiasm among investors, is notably the most substantial since the culmination of the bullish market phase in late 2021.

Source: CoinShares

The driving force behind this meteoric rise is primarily tied to the anticipation surrounding the prospective launch of a spot-based Exchange-Traded Fund (ETF) in the United States. This wave of anticipation has propelled both prices and inflows, culminating in a surge that has elevated the total assets under management (AuM) to an impressive $45.3 billion, a pinnacle not scaled in over a year and a half.

A closer look at the regional distribution of these inflows reveals that Canada and Germany collectively constituted a staggering 87% of the total influx. However, notably absent from substantial participation was the United States, which witnessed a relatively meager $30 million in inflows. This restrained participation from U.S. investors is widely speculated to be a strategic pause as they await the imminent ETF launch.

Breaking down the individual asset inflows, Bitcoin emerged as the dominant player, witnessing a staggering influx of $312 million last week. These figures pushed the year-to-date inflows for Bitcoin just past the $1.5 billion mark. Interestingly, this surge coincided with short-sellers capitulating for the third consecutive week, marking a significant trend reversal. Despite a 61% decline in Assets under Management (AuM) since the peak in April 2023, Bitcoin’s Exchange-Traded Product (ETP) volumes remained robust, accounting for 18% of the total spot Bitcoin volumes, emphasizing the sustained preference for ETPs as a means of exposure to this asset class.

Ethereum, in its own right, demonstrated a resurgence in investor sentiment, with inflows amounting to $34 million last week. This recent streak of positive inflows, totaling $103 million over the past four weeks, starkly contrasts the prevailing outflows earlier in the year. It signifies a pivotal shift in sentiment among investors towards Ethereum.

Moreover, other prominent digital assets like Solana, Polkadot, and Chainlink also experienced notable inflows of $3.5 million, $0.8 million, and $0.6 million, respectively, adding to the overall momentum within the cryptocurrency investment landscape.

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