Digital Asset Investment Products See Modest Inflows for Fourth Consecutive Week
According to the latest CoinShares report, digital asset investment products have experienced modest inflows for the fourth consecutive week, totaling $66 million. The total assets under management (AuM) have also increased to $33 billion, reaching the highest level since mid-August.
Investor Caution Despite Excitement Over Bitcoin ETF Launch
The recent inflows are likely connected to the anticipation of a spot bitcoin ETF launch in the US. However, compared to June announcements, these inflows are relatively low, suggesting that investors are exercising more caution this time.
Solana Emerges as the Most Popular Altcoin
Last week, Solana saw additional inflows of $15.5 million, bringing its year-to-date inflows to $74 million, which accounts for 47% of its AuM. This makes Solana the most popular altcoin so far in 2022.
Bitcoin Continues to Dominate Investment Inflows
Bitcoin investment products received 84% of the total inflows, pushing year-to-date inflows to $315 million.
Ethereum Faces Outflows Amid Concerns
On the other hand, Ethereum experienced further outflows amounting to $7.4 million last week. It was the only altcoin to see outflows during this period.
“The lower inflows this time round, despite the positive news from the Grayscale vs SEC court ruling, suggest investors are adopting a more cautious approach even as bitcoin ETF anticipation builds,” said James Butterfill, CoinShares Research.
The report indicates that although there is excitement surrounding a potential spot bitcoin ETF approval, the inflow amounts are much smaller compared to June. This reflects a more tempered approach from investors.
Hot Take: Crypto Investors Exercise Caution Amid Bitcoin ETF Anticipation
The latest CoinShares report reveals that digital asset investment products have seen modest inflows for the fourth consecutive week. While there is anticipation over a potential spot bitcoin ETF launch in the US, investors are exercising caution this time. Solana emerges as the most popular altcoin of 2022 so far, with significant inflows. However, concerns around Ethereum have led to outflows. The report suggests that investors remain cautiously optimistic about a bitcoin ETF but are uncertain about its approval and timeline. Compared to June, the current inflows indicate a more tempered expectation among crypto investors.
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