Digital Asset Investment Products See Positive Sentiment with $57m Inflows: Coinshares

Digital asset investment products have seen a resurgence in investor interest, with a net inflow of $57m last week, according to the Digital Asset Fund Flows Weekly Report by Coinshares. While this is a positive development for the market, it is notable that the volumes were low, standing at $970m for the week. This was reflected in the global bitcoin exchange market, where volumes were just 25% of the YTD average, with trading volumes of $18bn for the week.

Despite the low volumes, the inflows to digital asset products have brought them back to a net inflow position year-to-date. The report highlights that positive sentiment was primarily driven by the US, which saw inflows of $27m. Germany, Switzerland, and Canada also saw inflows of $17m, $13m, and $2.2m, respectively, indicating the breadth of positive sentiment for digital assets.

Bitcoin continues to be the most popular digital asset investment product, accounting for 98% of all inflows, with $56m in investment. However, seven altcoins also saw minor inflows, most notably Uniswap, Polkadot, and Polygon with $0.5m, $0.4m, and $0.23m, respectively. In contrast, short-bitcoin suffered minor outflows of $0.6m.

The Shapella upgrade on the Ethereum network on April 12th did not generate significant inflows, with the total inflow for the week being $0.6m. Meanwhile, blockchain equities saw minor inflows totalling $2.1m, indicating a relatively quiet week for this segment of the market.

Despite the low trading volumes, the positive sentiment among investors is encouraging for the digital asset market. It remains to be seen whether this trend will continue in the coming weeks, particularly in light of the volatility that has been observed in the market in recent months. Nonetheless, the report by Coinshares is a positive indicator of the growing interest in digital asset investment products among investors.

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