Record Inflows Propel Digital Asset Investment Products to New Heights

Key Points:

• Digital asset investment products saw a record $1.44 billion in inflows last week, pushing year-to-date investments to $17.8 billion, far exceeding 2021’s total.
• Bitcoin recorded its fifth-largest weekly inflow at $1.35 billion, while shorts on Bitcoin saw their highest weekly outflow since April amid shifting investor sentiment.

Last week, digital asset investment products surged with a staggering $1.44 billion in inflows, according to the latest report from CoinShares.

Read more: Digital Asset Investment Products Face Significant Outflows Amid Investor Pessimism

Digital Asset Investment Products Hits Record Inflows

The robust influx catapulted year-to-date investments to an unprecedented $17.8 billion, surpassing last year’s total of $10.6 billion. The United States dominated the inflow chart, contributing $1.3 billion, while Switzerland, Hong Kong, and Canada also showed strong participation with inflows of $58 million, $55 million, and $24 million respectively.

Bitcoin, in particular, saw remarkable activity, marking its fifth-largest weekly inflow ever recorded at $1.35 billion. Conversely, short positions in Bitcoin experienced their highest weekly outflow since April, totaling $8.6 million. Analysts attribute this activity to a combination of factors, including Germany’s recent sales of Bitcoin and a shift in investor sentiment following lower-than-expected CPI figures in the US, which spurred increased buying on price dips.

Altcoins Gain Traction as Investor Interest Diversifies

Ethereum also made headlines with $72 million in inflows, driven largely by anticipation surrounding the potential approval of spot ETFs in the United States. This marked Ethereum’s largest weekly inflow since March, reflecting growing investor optimism in the altcoin’s future prospects.

Additionally, several alternative cryptocurrencies, or altcoins, attracted investor interest. Solana received $4.4 million in inflows, while Avalanche and Chainlink saw $2 million and $1.3 million respectively.

The overall trading volumes, however, remained subdued at $8.9 billion for the week, compared to this year’s average of $21 billion per week, indicating cautious market sentiment despite the significant inflows.