Investment Products for Digital Assets See Significant Inflows
Last week, investment products for digital assets received a substantial influx of $708 million, contributing to a total of $1.6 billion in inflows for the year. This has increased the global assets under management to $53 billion.
However, trading volumes in exchange-traded products (ETPs) dropped to $8.2 billion from the previous week’s total of $10.6 billion. Despite this decrease, the volumes still exceed the weekly average of $1.5 billion seen in 2023. According to CoinShares’ latest report, these volumes represent 29% of Bitcoin’s overall trading activity on trusted exchanges.
Solana Shows Strong Comeback
After a period of lackluster performance, investment products focused on Solana are displaying renewed strength amid a broader market rebound.
In CoinShares’ ‘Digital Asset Fund Flows Weekly Report,’ it was reported that Solana experienced inflows of over $13 million last week, surpassing Ethereum and Avalanche, which saw outflows of $6.4 million and $1.3 million respectively during the same period. Other altcoins such as Cardano, Litecoin, and XRP also noted minor inflows.
Bitcoin-focused investment products continued to dominate, attracting inflows amounting to $703 million last week, constituting 99% of all flows.
Short positions in Bitcoin experienced slight outflows totaling $5.3 million.
US Investment Scene Thrives
The United States remains in the spotlight as inflows reached $721 million last week, boosted by newly issued ETFs that attracted $1.7 billion in inflows. These ETFs have maintained an average of $1.9 billion in inflows over the past four weeks, accumulating total inflows of $7.7 billion since their introduction on January 11th.
However, this has been counteracted by outflows from established issuers amounting to $6 billion, though recent data suggests a significant slowdown in the pace of these outflows.
In other regions, Switzerland, Germany, and Brazil recorded weekly inflows of $20.9 million, $3.5 million, and $1.3 million respectively. Australia and France had inflows of $0.9 million and $0.1 million. On the other hand, Canada and Sweden experienced outflows of $31.3 million and $8.2 million respectively.
Hot Take: Investment Products for Digital Assets See Significant Inflows Amid Market Rebound
Last week witnessed significant inflows of $708 million into investment products for digital assets, contributing to a total of $1.6 billion in inflows for the year. Although trading volumes in ETPs dropped, they still surpassed the weekly average seen in 2023. Solana investment products showed renewed strength, while Bitcoin-focused products continued to dominate with substantial inflows. The United States remained a thriving hub for investments, with newly issued ETFs attracting substantial inflows. However, established issuers experienced outflows at a slower pace. Overall, these numbers indicate growing interest and confidence in the digital asset market as it rebounds from a period of low performance.
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