Digital Asset Investment Products Experience a Cumulative Inflow
Last week, the digital asset investment products received a total inflow of $176 million, marking the eighth week in a row of positive weekly inflows. This steady increase in investment is a positive indicator for the market.
The proportion of total cryptocurrency volumes held by Exchange-Traded Products (ETPs) has been rising, averaging 11%, which is significantly higher than the long-term historical average of 3.4%. This percentage is also notably higher than the averages observed during the 2020/21 bull market, indicating a growing trend in ETP investment.
YTD Inflows Surpass $1.32 Billion
The cumulative inflows into digital asset investment products have reached $1.32 billion so far this year. While this is a substantial figure, it falls short of the significant inflows seen in 2020 and 2021. However, the recent weeks have shown consistent positive inflows, indicating a positive trend for the market.
According to CoinShares, the trading volumes in Exchange-Traded Products (ETPs) have maintained an average of $3 billion per week, twice the average recorded this year at $1.5 billion, indicating a significant increase in trading activity in ETPs.
Geographically, Canada, Germany, and Switzerland maintained positive inflows of $98 million, $63 million, and $35 million, respectively, while the United States experienced outflows amounting to $19 million from futures-based products. Additionally, Brazil, France, and Australia settled with $1.1 million, $1.1 million, and $0.8 million respectively.
Bitcoin Leads, But Altcoins Not Far Behind
Bitcoin remains the dominant player, attracting $155 million in inflows over the past eight weeks, constituting 3.4% of Assets under Management (AuM). This is a positive sign for the market, reflecting continued investor interest in the leading cryptocurrency.
Altcoins also witnessed significant inflows, with Solana leading the pack with an inflow of $13.6 million, followed by Ethereum with $3.3 million and Avalanche with $1.8 million. Cardano, XRP, and Litecoin also saw inflows of $0.8 million, $0.5 million, and $0.4 million, respectively, indicating a broad interest in various digital assets.
Hot Take: Positive Trend in Digital Asset Investments Continues
The consistent positive weekly inflows and rising proportion of total cryptocurrency volumes held by Exchange-Traded Products (ETPs) indicate a positive trend in digital asset investments. Despite not reaching the levels seen in previous years, the steady inflows and growing interest in altcoins demonstrate a continued and broadening interest in the digital asset market, making it an exciting time for crypto investors.
By
By
By
By