In a recent blog post by James Butterfill, Head of Research at European digital asset investment firm CoinShares, it was reported that there has been a $2 billion inflow into digital asset investment products over the past week. This increase continues a trend of positive inflows over the past five weeks, bringing the total to $4.3 billion. Trading volumes in Exchange Traded Products (ETPs) also saw a significant rise, reaching $12.8 billion for the week, a 55% increase from the previous week.
Bitcoin remained the focal point of investment, with $1.97 billion in inflows recorded within the week. This significant investment highlights Bitcoin’s enduring dominance in the digital asset market. On the other hand, short-Bitcoin products experienced outflows for the third consecutive week, totaling $5.3 million. Ethereum also saw notable activity, with $68.9 million in inflows, marking its best week since March. This surge is believed to be linked to the SEC’s approval of spot-based ETFs, which has boosted investor confidence.
The United States led the way in terms of inflows, contributing $1.98 billion. The first day of the week saw the third-largest daily inflow on record, indicating strong investor activity. The iShares Bitcoin ETF emerged as a significant player, surpassing Grayscale with $21 billion in Assets under Management (AuM). Butterfill noted that the inflows were broad-based, with almost all providers seeing inflows and a slowdown in outflows from incumbents. This change in sentiment is believed to be a response to weaker-than-expected macro data in the US, leading to expectations of a monetary policy rate cut.
Altcoins also saw some interest from investors, with Fantom and XRP standing out. Fantom recorded inflows of $1.4 million, while XRP saw $1.2 million in inflows. This diversified interest suggests a broader confidence in the digital asset market. In terms of providers, iShares ETFs in the USA led with $948 million in inflows, followed by Fidelity ETFs with $680 million. Grayscale Investments faced outflows of $29 million, indicating a shift towards other providers like iShares.
The overall positive price action has pushed total assets under management above the $100 billion mark for the first time since March this year. This milestone reflects renewed investor confidence in digital assets, supported by significant inflows into major cryptocurrencies and notable participation from altcoins and regional markets. With the digital asset market showing continued growth and resilience, investors are finding new opportunities for diversification and growth in their portfolios.
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