Digital Asset Investment Products Experience $1.18 Billion Inflows
Last week, digital asset investment products saw a significant increase in inflows, reaching $1.18 billion, according to CoinShares. Although this figure did not surpass the previous high in October 2021, when Bitcoin ETFs attracted $1.5 billion in inflows.
Record-Breaking Trading Volumes for Exchange-Traded Products (ETPs)
The latest report from CoinShares also revealed that trading volumes for Exchange-Traded Products (ETPs) hit a record high of $17.5 billion last week. This surpassed the weekly average of $2 billion seen in 2022.
These trading volumes accounted for nearly 90% of the daily trading volumes on reputable exchanges last Friday, which is a significant deviation from the usual range of 2%-10%.
Bitcoin Dominates Inflows with 98% Share, Solana Sees Decline
Bitcoin continued to dominate the inflows, attracting a staggering $1.16 billion and representing 98% of the total inflows. This also accounted for 3% of total assets under management (AuM).
In contrast, Solana only saw $0.5 million in inflows over the past week. Cardano and Litecoin attracted more inflows than Solana, with $1.4 million and $0.8 million, respectively.
The report also noted minor inflows for short-bitcoin, totaling $4.1 million.
Ethereum and XRP Receive Inflows, Polkadot with Modest Amount
Ethereum experienced total inflows of $26 million during the same period, while XRP saw inflows of $2.2 million. Polkadot, on the other hand, received a modest $0.2 million in weekly inflows.
US Takes the Lead in Inflows
With the approval of the first-ever spot Bitcoin ETF by the Securities and Exchange Commission, the United States witnessed a substantial influx of $1.24 billion in inflows last week.
Switzerland also saw significant activity, with inflows totaling $21 million.
On the other hand, Europe and Canada experienced outflows, with $44 million leaving Canada, $27 million leaving Germany, and $16 million leaving Sweden. CoinShares’ Head of Research, James Butterfill, suggested that these outflows may be due to traders transitioning to the US market.
Blockchain Equities Attract Substantial Inflows
In addition to digital asset investment products, blockchain equities also saw substantial inflows. A total of $98 million flowed into blockchain equities, contributing to a cumulative total of $608 million in inflows over the past seven weeks.
Hot Take: Digital Asset Investment Products See Significant Inflows, Bitcoin Dominates
Last week saw a notable increase in inflows for digital asset investment products, reaching $1.18 billion. Bitcoin continued to dominate with 98% of the total inflows, while Solana experienced a decline in investor preference. The approval of the first-ever spot Bitcoin ETF in the US contributed to a substantial influx of funds from both the US and Switzerland. Ethereum and XRP also received significant inflows during this period. These figures reflect a growing interest in digital assets and highlight Bitcoin’s continued dominance in the market.
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