Digital Asset Investment Funds See Inflows Following Market Rebound
After a period of sell-offs, digital asset investment funds have experienced an increase in inflows over the past week. According to the CoinShares Weekly Crypto Asset Flows Report, Bitcoin and other cryptocurrencies have seen massive inflows, resulting in a total of $1.6 billion in yearly entries.
This surge in inflows has boosted the Assets Under Management (AUM) to $53 billion, slightly surpassing last year’s figure. The approval of spot Bitcoin ETFs by the SEC has contributed to the rise in trading figures for the crypto market leader.
Bitcoin Dominates Institutional Funds Inflow
Bitcoin continues to dominate the flow of institutional funds into the cryptocurrency market, with 99% of total inflows last week. The market leader recorded $703 million in inflows, while shorts on Bitcoin saw $5.3 million in outflows.
Bitcoin’s recent upturn follows its recovery of lost gains over the past seven days. Currently trading at $42,860 with a 1.90% increase, Bitcoin has also witnessed a 21% rise in trading volumes at $16.8 billion.
Monthly flows for Bitcoin are now at $88.6 million, while yearly inflows stand at $1.5 billion, contributing to an AUM of $38.1 billion.
Increased Activity Across the Crypto Market
Ethereum recorded outflows of $6 million last week, while Solana and Cardano saw inflows of $13.4 million and $0.6 million respectively. Although Ethereum products have suffered losses this week, the asset still maintains an AUM of $9.8 billion.
Solana experienced a 4% decline in the last seven days, while Cardano saw a 0.5% increase during the same period. Multi-asset recorded gains of $2.4 million, bringing yearly gains to $30 million.
The United States witnessed the majority of inflows with $721 million, followed by Switzerland and Germany with gains of $20.9 million and $3.5 million respectively. On the other hand, Canada recorded outflows of $31.3 million, resulting in yearly exits of $241 million.
Hot Take: Digital Asset Investment Funds Thrive Amidst Market Rebound
Digital asset investment funds have seen significant inflows following a market rebound after recent sell-offs. Bitcoin continues to dominate institutional funds flowing into the cryptocurrency market, with massive inflows driving its AUM to new heights. Despite some losses in Ethereum products, the overall crypto market has experienced increased activity, with inflows into Solana and Cardano. The United States remains a prominent player in attracting inflows, while Canada has seen some outflows. Overall, these developments indicate growing investor interest and confidence in digital assets as an investment avenue.
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