Record $1bn Inflows in Digital Asset Investment

Record
$1bn
Inflows
in
Digital
Asset
Investment

In
a
landmark
development
for
the
digital
asset
market,
inflows
have
surged
by
US$1bn,
pushing
the
year-to-date
inflows
to
a
staggering
record
high
of
US$14.9bn.
This
remarkable
achievement
underscores
the
increasing
investor
confidence
and
interest
in
digital
assets,
particularly
in
Bitcoin
and
Ethereum.

Bitcoin
Leads
the
Charge

According
to

CoinShares,
the
majority
of
these
inflows
were
into
Bitcoin
ETPs,
which
saw
an
impressive
US$1.01bn
last
week
alone.
This
significant
influx
has
been
a
key
driver
for
the
overall
record-breaking
totals
seen
this
year.

Interestingly,
while
Bitcoin
ETPs
experienced
massive
inflows,
short-Bitcoin
products
suffered
outflows
totalling
US$4.3m,
suggesting
a
shift
in
market
sentiment
towards
a
more
optimistic
outlook
for
Bitcoin
despite
recent
price
increases.
This
shift
is
likely
influenced
by
the
interpretation
of
the
Federal
Open
Market
Committee
(FOMC)
minutes
and
recent
macroeconomic
data,
which
investors
perceive
as
slightly
dovish.

Ethereum
and
Other
Digital
Assets

Ethereum
also
saw
a
substantial
increase
in
inflows,
amounting
to
US$36m
for
the
week.
This
marks
the
highest
weekly
inflow
for
Ethereum
since
March,
likely
driven
by
the
approval
of
ETH
ETFs
in
the
United
States.
Other
digital
assets
like
Solana
also
benefitted,
with
inflows
of
US$8m
last
week.

Regional
Insights

The
inflows
were
predominantly
concentrated
in
the
United
States,
which
accounted
for
US$1.03bn
of
the
total.
Grayscale,
a
significant
player
in
the
market,
saw
its
outflows
reduce
dramatically
to
just
US$15m
for
the
week.
Europe
also
showed
positive
trends,
with
Germany
and
Switzerland
seeing
inflows
of
US$48m
and
US$30m
respectively.

However,
not
all
regions
witnessed
positive
movements.
In
Hong
Kong,
despite
an
initial
surge
following
the
launch
of
Bitcoin
spot-based
ETFs
(which
saw
US$300m
in
the
first
week),
there
were
outflows
of
US$29m
last
week.

Market
Overview

The
recent
price
increases
have
propelled
the
total
value
of
digital
asset
ETPs
to
US$98.5bn,
with
weekly
ETP
trading
volumes
rising
by
28%
to
US$13.6bn.
The
consistent
inflows
over
the
past
three
weeks
highlight
growing
investor
interest
and
confidence
in
the
digital
asset
market.

To
access
all
our
research,
click

here.

To
see
the
full
detail
report,
click

here.

Image
source:
Shutterstock

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Record $1bn Inflows in Digital Asset Investment