Digital-Asset Investment Products See Inflows Led by Solana and Bitcoin Funds
Asset managers such as CoinShares, Grayscale, 21Shares, Bitwise, and ProShares have experienced inflows for the second consecutive week, marking the highest inflows since July. These investment products added a total of $78 million, with Solana and Bitcoin funds leading the way.
According to CoinShares’ latest report, Solana investment products saw their largest inflows since March 2022, adding $24 million. This is significant considering the recent launch of ether futures ETF products, as it shows that Solana continues to be the preferred altcoin among investors. In fact, Solana funds have seen inflows in 28 out of 32 weeks this year.
While Bitcoin dominated the overall inflows with $43 million, some investors took advantage of recent price strength and added to short-bitcoin product positions, resulting in $1.2 million in inflows during the same period.
Regional Divide and Trading Volumes
The regional divide between Europe and the United States persisted last week, with Europe accounting for 90% of the inflows. In contrast, the U.S. and Canada only contributed $9 million to the total inflows. This suggests a further divergence in sentiment between these regions.
Additionally, trading volumes for exchange-traded products saw a significant increase of 37%, reaching $1.13 billion for the week. Bitcoin volume on trusted exchanges also experienced a 16% rise.
Tepid Appetite for Ether Futures ETFs
The launch of six ether futures ETFs in the U.S. last week attracted less than $10 million, indicating a tepid appetite for these products. This is in stark contrast to the $1 billion witnessed by bitcoin futures ETFs during their first week in 2021. However, it’s important to note that the market environment was very different at that time, and overall investor appetite for digital assets is currently low.
Hot Take: Digital-Asset Investment Products Remain Strong, While Ether Futures ETFs Face Lackluster Demand
Despite the overall growth in digital-asset investment products, particularly in Solana and Bitcoin funds, the launch of ether futures ETFs in the U.S. has not generated significant interest. This could be attributed to the current low investor appetite for digital assets and the different market conditions compared to when bitcoin futures ETFs were introduced. It will be interesting to see if this tepid response changes in the future as sentiment towards ether and other altcoins evolves.
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