Digital Asset Investment Product Inflows Hit 3-Month High

Key Points:

• Digital asset investment products saw inflows of $1.2 billion for the third consecutive week, with total assets under management rising by 6.2%.
• Bitcoin attracted $1 billion in inflows, and Ethereum broke a five-week negative streak with $87 million in inflows.

According to CoinShares, digital asset investment products have attracted inflows for the third consecutive week, totalling $1.2 billion, inspired by expectations of further dovish monetary policy in the US, as well as positive price momentum.

Read more: Digital Asset Investment Products Inflow Rebound Ahead FOMC

Digital Asset Investment Products Soar with Huge Inflows

The total AuM increased by 6.2% last week, indicating growing investor interest in the markets. This might have been further helped by news of the approval of options for some US-based digital asset products, even though trading volumes did not reflect the same enthusiasm, falling 3.1% on a week-to-week basis.

Digital asset investment product inflows were split regionally. The U.S. and Switzerland took in $1.2 billion and $84 million, respectively. The latter posted its largest inflows since mid-2022. Outflows from Germany and Brazil saw $21 million leave the German market and $3 million exit Brazilian assets.

Bitcoin and Ethereum Shine Despite Mixed Altcoin Sentiment

Bitcoin continued to lead the race in the digital asset class, taking inflows of $1 billion. Curiously enough, this has also coincided with the increased interest in short-bitcoin products, whose inflows totalled $8.8 million, reflecting the hedging by some investors.

Ethereum finally witnessed a reversal after five weeks of outflows, with inflows of $87 million. It’s the first positive movement since early August.

Not all digital assets were feeling quite as optimistic. Solana saw outflows of $4.8 million, while altcoins such as Litecoin and XRP witnessed inflows of $2 million and $800,000 respectively. Meanwhile, Binance and Stacks recorded modest outflows of $1.2 million and $900 000 in outflows.