Digital Asset Investment Products Saw Inflows $151 Million In The First Week Of 2024

Key Points:

• Digital asset investment products gained $151 million in the first week of 2024, reaching $2.3 billion since the Grayscale vs. SEC lawsuit.
• Bitcoin dominated with $113 million in inflows, constituting 3.2% of total assets, while short-bitcoin ETPs faced outflows.
• Ethereum attracted $29 million, while Cardano, Avalanche, and Litecoin also saw notable inflows.

In the initial week of 2024, digital asset investment products experienced significant inflows, totaling $151 million.

Digital Asset Investment Products Surge: $151 Million Inflows in 2024’s First Week

This brings the cumulative inflows since the resolution of the Grayscale vs. SEC lawsuit to $2.3 billion, constituting 4.4% of the total assets under management (AuM). Notably, even though the spot-based ETF is yet to launch in the US, 55% of the inflows originated from US exchanges. Germany and Switzerland closely followed, accounting for 21% and 17%, respectively.

Bitcoin dominated the share of digital asset investment products, securing $113 million. Over the last nine weeks, Bitcoin’s inflows represented 3.2% of AuM. Conversely, short-bitcoin observed outflows, totaling $1 million in the first week of the year. Despite speculations surrounding a potential “buy the rumor, sell the news” scenario with the US ETF launch, short-bitcoin ETPs witnessed outflows amounting to $7 million in the last nine weeks.

Ethereum showcased a positive trend, attracting inflows of $29 million, contributing to a total of $215 million over the past nine weeks. However, Solana faced challenges at the start of the year, with outflows totaling $5.3 million.

Several altcoins experienced notable inflows, including Cardano ($3.7 million), Avalanche ($2 million), and Litecoin ($1.4 million).

In addition to cryptocurrency trends, blockchain equities displayed a robust performance, witnessing inflows of $24 million in the first week of the year. This indicates a promising start for digital assets and blockchain-related investments in 2024.