Record Inflows into Digital Asset Investment Products
Last week, investors injected an impressive $346 million into digital asset investment products, marking the largest weekly inflow in over two months. This surge is fueled by the anticipation of a potential spot-based ETF launch in the United States, reminiscent of the bullish market seen in late 2021.
Ethereum Leads Altcoin Surge
According to CoinShares Head of Research James Butterfill’s “Digital Asset Fund Flows Weekly Report,” the combination of price increases and continuous inflows has boosted total assets under management (AuM) to a staggering $45.3 billion, the highest level in over 18 months.
The majority of these inflows, accounting for 87%, originated from Canada and Germany. In contrast, the United States saw a relatively modest $30 million in inflows, indicating a cautious approach from investors as they await the spot ETF launch.
Ethereum experienced a significant turnaround, with $34 million in inflows last week. This contributed to a four-week total of $103 million, counteracting the trend of outflows observed throughout the year.
Other altcoins such as Solana, Polkadot, and Chainlink also attracted investor attention with inflows totaling $3.5 million, $0.8 million, and $0.6 million respectively.
Bitcoin Witnesses Massive Inflows
Last week, Bitcoin received a massive $312 million in inflows, surpassing $1.5 billion in year-to-date inflows. Despite short-sellers experiencing three consecutive weeks of outflows totaling $0.9 million, Bitcoin’s assets under management have declined by 61% since reaching its peak in April 2023.
The report also highlighted that exchange-traded products (ETPs) as a percentage of total spot Bitcoin volumes remain significantly above average, representing 18% last week. This trend indicates the increasing use of ETPs to gain exposure to the cryptocurrency asset class.
Hot Take: Digital Asset Investment Products Witness Record Inflows
Last week saw a surge in investor interest in digital asset investment products, with a staggering $346 million flowing into the market. The anticipation of a potential spot-based ETF launch in the United States has ignited excitement reminiscent of the bullish market seen in late 2021.
Ethereum leads the altcoin surge, with substantial inflows of $34 million last week and a four-week total of $103 million. Other altcoins like Solana, Polkadot, and Chainlink have also attracted investor attention.
Bitcoin remains a dominant force, capturing $312 million in inflows. However, its assets under management have declined by 61% since reaching its peak in April 2023. The increasing use of exchange-traded products (ETPs) to gain exposure to Bitcoin highlights the growing interest in the cryptocurrency asset class.
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