Promising Start for Digital Asset Investment Products in 2024
The debut week of 2024 marked a promising start for digital asset investment products, with inflows of $151 million in assets. This brings the total inflows since the Grayscale vs. SEC lawsuit to $2.3 billion, which accounts for 4.4% of all assets under management (AuM), according to CoinShares.
Spot Bitcoin ETF Not ‘Buy The Rumor Sell The News’
CoinShares’ latest report reveals that there have been outflows totaling $7 million from short-BTC ETPs over the past nine weeks, indicating that the launch of the ETF in the US was not a “buy the rumor, sell the news” event as anticipated. On the other hand, Bitcoin experienced the highest influx, with $113 million, contributing to a cumulative inflow of 3.2% of AuM over the same period.
Although a spot Bitcoin ETF has not yet been launched in the US, 55% of the inflows came from US exchanges, while Germany and Switzerland witnessed 21% and 17% inflows, respectively.
Solana Sees First Outflows of 2024
Solana, which performed well in 2023, saw outflows amounting to $5.3 million at the beginning of 2024. On the other hand, Ethereum saw inflows totaling $29 million and experienced a shift in sentiment over the last nine weeks, with total inflows reaching $215 million. Other altcoins like Cardano, Avalanche, and Litecoin also saw notable inflows.
Promising Start for Blockchain Equities
Blockchain equities had a promising start to 2024, recording $24 million in inflows over the last week.
Hot Take: Promising Start for Digital Asset Investment Products in 2024
The debut week of 2024 has shown a promising start for digital asset investment products, with significant inflows and overall growth. Despite the anticipation of a “buy the rumor, sell the news” event surrounding the launch of a spot Bitcoin ETF in the US, there have been outflows from short-BTC ETPs instead. Bitcoin remains popular among investors, with substantial inflows contributing to its overall growth. Additionally, altcoins like Ethereum, Cardano, Avalanche, and Litecoin have also seen notable inflows. Overall, this indicates a positive sentiment towards digital assets and sets the stage for potential growth in the coming year.
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