Weekly Inflows into Digital Asset Investment Products
For the third consecutive week, there have been strong inflows of $136 million into digital asset investment products. This brings the total inflows for the past three weeks to $470 million, completely offsetting the previous nine weeks of outflows. As a result, there has been a net positive inflow of $231 million for the year, according to CoinShares’ latest report.
Main Breakdown:
– Weekly inflows into digital asset investment products reached $136 million.
– Total inflows for the past three weeks amounted to $470 million.
– Previous nine weeks of outflows have been fully offset.
– Net positive inflow for the year is now $231 million.
– CoinShares’ report highlights the turnaround in fortunes.
The renewed race for a spot bitcoin ETF, initiated by BlackRock’s filing on June 15, coincided with this positive trend. However, trading volumes decreased to $1 billion for the last week, possibly due to seasonal effects. Despite this, bitcoin remains the preferred choice among investors, receiving 98% ($133 million) of the inflows. Ethereum saw inflows of $2.9 million but remains in a negative net flows position for the year with outflows of $63 million.
In addition to bitcoin and ethereum, altcoins such as Solana, XRP, Polygon, Litecoin, and Aave also attracted inflows. Cosmos and Cardano experienced minor outflows. On the other hand, blockchain equities gained the largest inflows in a year at $15 million.
Hot Take:
The consistent strong inflows into digital asset investment products, particularly in bitcoin, indicate a growing interest and confidence in the cryptocurrency market. The positive net inflow for the year reflects a shift in sentiment and suggests that investors are becoming more bullish on digital assets. However, the decrease in trading volumes may be a temporary effect and should not overshadow the overall positive trend. The entrance of BlackRock into the race for a bitcoin ETF further validates the potential of cryptocurrencies as a mainstream investment option.
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