US ETFs Thrive with $1.25bn Inflows, Blockchain Equities Attract $156m in Latest Week
The US exchange-traded fund (ETF) market for digital assets has seen a strong inflow of capital since the launch of the first spot-based Bitcoin ETFs in January 2024, according to a report by CoinShares, a digital asset investment firm.
The report, titled Digital Asset Fund Flows Weekly, revealed that net inflows into US ETFs totalled US$1.25 billion since their debut, while the incumbent, higher cost exchange-traded products (ETPs) suffered US$2.9 billion of outflows in the same period.
The report also showed that digital asset investment products saw minor outflows of US$21 million last week, although this number masked the very high trading volumes of US$11.8 billion in Bitcoin, which accounted for 63% of all Bitcoin volumes on trusted exchanges.
The report suggested that there has been a minor migration of assets to the US, where fees are currently more competitive, as the US saw US$263 million of inflows, while Canada and Europe combined saw US$297 million of outflows.
Bitcoin, the largest and most popular digital asset, saw minor outflows of US$25 million last week, but some investors took advantage of the recent price weakness to add to short-Bitcoin investment products, which saw US$13 million of inflows.
Altcoins, or alternative digital assets to Bitcoin, also suffered, with Ethereum and Solana seeing US$14 million and US$8.5 million of outflows respectively.
Blockchain equities, or stocks of companies that are involved in the blockchain industry, saw further large inflows of US$156 million last week, bringing the total inflows in the last nine weeks to US$767 million.
The report concluded that the US ETF market has been a game-changer for the digital asset industry, as it has attracted more investors and increased the liquidity and efficiency of the market. It also noted that the high trading volumes in Bitcoin indicate a strong interest and demand for the digital asset, despite the volatility and regulatory uncertainty.
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