Digital Asset Investment Products Recorded Second-highest Weekly Inflows

Key Points:

• Digital asset investment products saw a surge in inflows, reaching the second-largest weekly total of $1.84 billion.
• The US dominated the market with net inflows of $1.88 billion, despite outflows from Grayscale’s Bitcoin ETF.
• Bitcoin accounted for 94% of the inflows at $1.72 billion, while Ethereum saw its largest weekly inflows since mid-July 2022.

Digital asset investment products experienced a surge in weekly inflows, marking the second-largest on record, amounting to a total of $1.84 billion.

Record Inflows: Digital Asset Investment Products Surge

Trading volumes for digital asset investment products reached an unprecedented high of over $30 billion for the week, peaking at times to represent 50% of the global Bitcoin daily trading volumes on reputable exchanges.

The total assets under management (AuM) surged close to an all-time high, reaching $82.6 billion, just shy of the $86 billion peak established in early November 2021, following recent price surges.

The United States maintained its dominance in the market, witnessing net inflows totaling $1.88 billion. However, this was somewhat tempered by increased outflows from incumbent Grayscale, which experienced outflows amounting to $1.46 billion in its Bitcoin ETF.

Nonetheless, new issuers managed to counterbalance this with a total of $3.2 billion in inflows last week. In contrast, other regions experienced mixed flows, with Switzerland recording $20 million in inflows, while Sweden, Germany, and Canada saw outflows totaling $32 million, $35 million, and $23 million respectively.

Read more: Bitcoin Spot ETF and Futures ETF: Differences To Make The Right Investment Choice

Bitcoin Dominance Persists: Ethereum Gains Momentum

The majority of the inflows, approximately 94%, were directed towards Bitcoin, amounting to $1.72 billion. However, recent price fluctuations prompted short investors to increase their positions, leading to an additional $22 million in inflows into short Bitcoin investment products.

Ethereum witnessed its largest weekly inflows since mid-July 2022, totaling $85 million last week. Nonetheless, its AuM stands at $14.6 billion, still below its peak of $23.7 billion.

In terms of other cryptocurrencies, Polygon experienced inflows of $7.6 million, representing 22% of its AuM, while Solana saw outflows of $12 million.