Digital Asset Investments Soar in 2024: $151M Inflows Signal Robust Start

The first week of 2024 marked a promising start for digital asset investments, as revealed in the latest Digital Asset Fund Flows Weekly Report by CoinShares. The report detailed a substantial influx of $151 million into digital asset investment products, adding to a cumulative total of $2.3 billion since the Grayscale vs. SEC lawsuit. This surge in investments represents 4.4% of the total Assets under Management (AuM).

Bitcoin led the charge, attracting the largest share of inflows at $113 million over the last nine weeks, accounting for 3.2% of AuM. Interestingly, short-Bitcoin products saw outflows amounting to $1 million in the first week of the year, contrary to expectations surrounding the launch of the ETF in the US. Notably, the anticipated “buy the rumour, sell the news” trend didn’t materialize, with outflows totaling $7 million over the last nine weeks for short-Bitcoin ETPs.

Source: CoinShares

Ethereum experienced a positive shift in sentiment, drawing in $29 million in inflows. This marks a significant turnaround, signaling renewed interest in the cryptocurrency. However, Solana faced a less favorable start to the year, grappling with outflows totaling $5.3 million.

Other altcoins also saw notable inflows, with Cardano, Avalanche, and Litecoin attracting $3.7 million, $2 million, and $1.4 million, respectively.

Source: CoinShares

In terms of geographical distribution, despite the absence of a spot-based ETF launch in the US, 55% of the inflows originated from US exchanges. Germany and Switzerland contributed significantly as well, representing 21% and 17% of the total inflows, respectively.

Beyond cryptocurrencies, blockchain equities also witnessed a positive start to the year, with inflows totaling $24 million over the last week. This broader interest in the blockchain ecosystem beyond digital currencies suggests growing investor confidence in related technologies and industries.

The report’s findings underscore the persistent appeal of digital assets despite regulatory uncertainties and market fluctuations. Investors seem to be navigating this evolving landscape, diversifying their investments across various cryptocurrencies and blockchain-related assets, indicating a maturing market poised for continued growth and innovation.

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