Inflows of $151 Million Witnessed in Digital Assets Investment Products in 2024’s First Week
In the first week of 2024, digital assets investment products attracted significant capital inflows, totaling $151 million. This surge can be attributed to the victory of Grayscale over the SEC regarding their spot Bitcoin ETF application. Since then, the market has seen a cumulative inflow of $2.3 billion, equivalent to 4.4% of the total assets under management (AUM).
American Exchanges and European Markets Lead the Inflows
Although the Bitcoin ETF is yet to be approved, American exchanges accounted for a significant portion, 55%, of the inflows. European markets, particularly in Germany and Switzerland, also showed strong activity, contributing 21% and 17% of the inflows, respectively. Additionally, blockchain equity investments saw a positive trend at the beginning of the year, with a notable influx of $24 million in the past week.
Bitcoin Dominates with $113 Million Inflows
Bitcoin emerged as the frontrunner in this rally, attracting $113 million in capital. This represents 3.2% of Bitcoin’s total AUM over the past nine weeks. Surprisingly, there was a $1 million outflow from short-Bitcoin investments in the first week of the year. This contradicts the expected reaction of ‘buying the rumor and selling the news’ in anticipation of a potential U.S. ETF launch.
Positive Shift for Ethereum and Attention for Cardano
Ethereum also experienced a positive shift in investor sentiment, with inflows reaching $29 million in 2024’s first week and totaling $215 million over the past nine weeks. On the other hand, Solana faced a less favorable start to the year, with outflows amounting to $5.3 million. Cardano, however, caught investors’ attention with inflows of $3.7 million.
Hot Take: Digital Assets Investment Products See Strong Inflows in 2024’s First Week
The first week of 2024 witnessed a significant surge in capital inflows for digital assets investment products, totaling $151 million. Despite the absence of an approved Bitcoin ETF, American exchanges and European markets played a major role in attracting these inflows. Bitcoin dominated the market with $113 million in inflows, while Ethereum also experienced positive investor sentiment. It will be interesting to see how these trends continue to evolve throughout the year.
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