Digital Asset Investment Products Witness $646M Inflows Amid Market Excitement Returns

Key Points:

• Last week, digital asset investment products saw a record $646 million influx, bringing the year’s total to $13.8 billion, primarily driven by Bitcoin.
• Ethereum and short Bitcoin investment products faced ongoing outflows, signaling potential bearish sentiment among investors.
• Despite the positive trend, ETF investor appetite appears to moderate, with weekly flows and volumes declining compared to early March levels.

Last week, digital asset investment products experienced a significant influx of $646 million, according to CoinShares, marking a record high for the year at $13.8 billion.

Record Inflows Propel Digital Asset Investment Products to New Heights

Bitcoin dominated the inflows, totaling $663 million. However, short Bitcoin investment products faced outflows for the third consecutive week, amounting to $9.5 million. Ethereum also encountered outflows for the fourth week straight, totaling $22.5 million.

Despite the overall positive sentiment in digital asset investment products, there are indications of moderation in appetite from ETF investors. Weekly flow levels have not matched those seen in early March, and volumes declined to $17.4 billion last week compared to $43 billion in the first week of March.

Regional Variations in Investor Sentiment Emerge

Regionally, sentiment varies widely. The US witnessed significant inflows of $648 million, while Brazil, Hong Kong, and Germany saw inflows of $10 million, $9 million, and $9.6 million, respectively. Conversely, Switzerland and Canada experienced outflows of $27 million and $7.3 million, respectively.

Bitcoin continues to be the focal point for investors, with substantial inflows, while short Bitcoin investment products faced ongoing outflows, suggesting a slight capitulation among bearish investors.

In contrast, Ethereum saw outflows for the fourth consecutive week. However, most other altcoins, including Litecoin, Solana, and Filecoin, saw inflows, indicating a broader positive sentiment towards alternative cryptocurrencies. Notably, Litecoin received $4.4 million in inflows, Solana $4 million, and Filecoin $1.4 million.