Digital Asset Investment Products See Inflows, Trading Volumes Lag
For the third consecutive week, digital asset investment products have attracted inflows totaling $15 million. However, trading volumes remain 27% lower than the average for 2023.
In the past week, Bitcoin received inflows of $16 million, bringing the year-to-date inflows to $260 million. Additionally, short BTC products also saw inflows of $1.7 million.
Altcoins Face Challenges
Unfortunately, altcoins did not fare well in the latest CoinShares report. Digital asset investment products dedicated to Tezos, Litecoin, and Chainlink experienced outflows of $0.25 million, $0.28 million, and $0.31 million respectively.
Ethereum also recorded outflows of $7.5 million despite the recent approval of nine Ethereum-based futures ETFs by the SEC.
XRP investment products, however, stood out among altcoins with inflows of $0.42 million for the 25th consecutive week. This reflects strong support from investors following successful legal challenges against the SEC.
Regional Disparity Persists
The regional disparity in digital asset investment remains evident. While Europe saw net inflows totaling $7 million last week, the United States experienced limited inflows. Notably, Sweden was the only European country to register outflows during this period.
Hot Take: Digital Asset Investment Inflows Continue Despite Altcoin Challenges
Despite a challenging week for altcoins, digital asset investment products have continued to attract inflows. Bitcoin remains popular with investors, while XRP stands out as an outlier among altcoins. The approval of Ethereum-based futures ETFs by the SEC has yet to translate into positive flows for Ethereum. The regional disparity in investment flows persists, with Europe seeing more inflows compared to the United States. Overall, the investment community’s consistent support for digital assets demonstrates their growing confidence in the market.
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