Digital Asset Investment Products Hit Record Inflows of $2.9 Billion

Key Points:

• Digital asset investment products saw a record-breaking weekly inflow of $2.9 billion, driving year-to-date inflows to $13.2 billion, surpassing 2021’s total.
• Bitcoin dominated with $2.86 billion in inflows last week, comprising 97% of total inflows this year, while short bitcoin products also saw significant growth.

Digital asset investment products experienced a surge in weekly inflows, reaching a record-breaking $2.9 billion, surpassing the previous week’s all-time high of $2.7 billion.

Record Inflows Propel Digital Asset Investment Products to New Heights

This spike has catapulted year-to-date inflows to an impressive $13.2 billion, surpassing the entire 2021 inflow of $10.6 billion. Trading volumes of digital asset investment products remained robust at $43 billion for the week, comprising a significant 47% of the global Bitcoin volumes.

Global Exchange-Traded Products (ETPs) breached the monumental $100 billion mark for the first time during the week. However, a price correction towards the end of the week caused it to settle slightly lower at $97 billion.

In terms of regional trends, the United States witnessed significant inflows of $2.95 billion. Minor inflows were also noted in Australia, Brazil, and Hong Kong, totaling $5 million, $24 million, and $15 million, respectively. Conversely, Canada, Germany, Sweden, and Switzerland experienced combined outflows of $78 million.

Bitcoin Dominance Continues as Short Products Gain Traction

Bitcoin continued to dominate, attracting $2.86 billion in inflows last week, constituting a staggering 97% of all inflows year-to-date. Conversely, short Bitcoin products observed their largest inflows in a year, totaling $26 million, marking their fifth consecutive week of growth.

However, smart contracting faced challenges, with Ethereum, Solana, and Polygon witnessing outflows totaling $14 million, $2.7 million, and $6.8 million, respectively. On a positive note, blockchain equities saw a turnaround with inflows of $19 million, marking the end of a six-week period of outflows.