Record inflow of $1 billion in digital asset investments
In a historic development for the digital asset market, inflows have increased by $1 billion, pushing inflows to a staggering record $14.9 billion this year. This remarkable performance underlines investors’ increasing confidence and interest in digital assets, especially Bitcoin and Ethereum.
Bitcoin leads the charge
According to Coin sharesThe majority of these inflows have been into Bitcoin ETPs, which saw an impressive US$1.01 billion last week alone. This significant influx has been a major driver of this year’s record totals.
Interestingly, while Bitcoin ETPs saw massive inflows, short Bitcoin products experienced outflows totaling $4.3 million, indicating that there is a shift in market sentiment towards a more optimistic outlook for Bitcoin, despite recent price increases. This shift is likely influenced by the interpretation of the Federal Open Market Committee (FOMC) minutes and recent macroeconomic data, which are seen as somewhat subdued by investors.
Ethereum and other digital assets
Ethereum also saw a substantial increase in inflows, which reached $36 million this week. This marks the highest weekly inflow for Ethereum since March, likely driven by the approval of ETH ETFs in the United States. Other digital assets like Solana also benefited, with $8 million inflows last week.
Regional insights
The inflows were mainly concentrated in the United States, which accounted for $1.03 billion of the total. Grayscale, a major player in the market, saw outflows decrease dramatically to just $15 million for the week. Europe also showed positive trends, with Germany and Switzerland seeing inflows of $48 million and $30 million respectively.
However, not all regions witnessed positive movements. In Hong Kong, despite an initial surge following the launch of Bitcoin spot-based ETFs (which raised $300 million in its first week), there was an outflow of $29 million last week.
Market overview
The recent price increases have pushed the total value of digital asset ETPs to $98.5 billion, with weekly ETP trading volumes increasing 28% to $13.6 billion. The consistent inflows over the past three weeks underline the growing interest and confidence of investors in the digital asset market.
Click to access all our research here.
Click to view the full detailed report here.
Image source: Shutterstock
. . .
Labels