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.
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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