Bitcoin Dominates As Digital Asset Investment Products Record $742M Inflows

Key Points:

• Digital asset investment products attracted significant inflows of $742 million over the past four weeks.
• Bitcoin dominated the inflows, representing 99% of the total with $140 million, while short bitcoin products experienced ongoing outflows.
• Ethereum faced outflows despite price appreciation, while minor inflows were observed for altcoins like Solana, Polygon, and Litecoin.

According to a recent report by CoinShare, digital asset investment products experienced significant inflows in the past week, reaching a total of $137 million, with Bitcoin accounting for a large proportion.

This marks a continuation of a strong trend, with the last four weeks seeing a cumulative inflow of $742 million, the highest since the final quarter of 2021. Bitcoin remains the dominant asset, attracting the majority of inflows, while Ethereum faced outflows despite its recent price appreciation. Let’s delve into the details of the latest investment trends.

The majority of inflows were concentrated in North America, with the United States and Canada accounting for $109 million and $28 million, respectively. Europe, on the other hand, experienced minor outflows, with only Switzerland witnessing minor inflows.

Bitcoin continued to be the preferred choice for investors, capturing 99% of all inflows with a total of $140 million. However, short Bitcoin investment products faced their 12th consecutive week of outflows, totaling $3.2 million. As a result, assets under management for short bitcoin products declined from their peak of $198 million in April to a mere $55 million.

Despite the recent price appreciation of Ethereum, the cryptocurrency experienced outflows of $2 million last week. Notably, Ethereum has consistently witnessed the highest outflows year-to-date among digital assets. In contrast, altcoins such as Solana, Polygon, and Litecoin observed minor inflows, ranging from $0.3 million to $0.5 million.

Trading volumes on investment products remained robust, exceeding the year average of $1.4 billion and reaching $2.3 billion last week. These volumes accounted for a larger proportion of total crypto volumes, representing 11% compared to the average of 2%.

The digital asset market continues to attract substantial investment, with significant inflows recorded in the past week. Bitcoin remains the dominant choice for investors, while Ethereum faced outflows despite its price appreciation. As trading volumes on investment products remain high, the market showcases resilience and investor interest in the crypto space.

While the lawsuit is far from over, the true story of the week was Ripple‘s legal triumph against the SEC. A court concluded that selling XRP tokens to the general public did not violate securities regulations, something the sector has long claimed. This is also the driving reason behind the recent surge in the cryptocurrency market.

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