Digital Asset Investment Products Experience a Cumulative Inflow
Past 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 digital currency volumes held by Exchange-Traded Products (ETPs) has risen, averaging 11%, which is significantly higher than the long-term historical average of 3.4%. This percentage is likewise 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 in the year. Although while this is a substantial figure, it falls short of the whole lot of inflows seen in 2020 and 2021. Nonetheless, 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 whole lot of 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. In addition, Brazil, France, and Australia settled with $1.1 Million, $1.1 Million, and $0.8 Million respectively.
Bitcoin (BTC) Leads, On the other hand, Altcoins Not Far Behind
Bitcoin (BTC) remains the dominant player, attracting $155 Million in inflows in the previous 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 likewise witnessed whole lot of inflows, with Solana (SOL) leading the pack with an inflow of $13.6 Million, followed by Ethereum (ETH) with $3.3 Million and Avalanche (AVAX) with $1.8 Million. Cardano (ADA), XRP, and Litecoin likewise saw inflows of $0.8 Million, $0.5 Million, and $0.4 Million, respectively, indicating a broad interest in numerous digital assets.
Hot Take: Positive Trend in Digital Asset Investments Continues
The consistent positive weekly inflows and growing proportion of total digital currency volumes held by Exchange-Traded Products (ETPs) indicate a positive trend in digital asset investments. Regardless of not reaching the levels seen in last 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 cryptocurrency investors.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.