Bitcoin emerged as the dominant digital asset among its counterparts, capturing a remarkable $140 million in inflows. This astonishing amount constituted an overwhelming 99% of all observed inflows.
According to the latest Coinshares Digital Asset Fund Flows Weekly Report, digital asset investment products experienced significant inflows last week, amounting to $137 million.
These figures mark a noteworthy trend, as the inflows over the past four weeks have reached an impressive total of $742 million. This surge represents the most substantial inflows since the final quarter of 2021, indicating renewed investor interest in the digital asset space.
Short Bitcoin Products Continue Facing Outflows
However, it is worth noting that short Bitcoin investment products, designed to bet against the cryptocurrency, experienced their 12th consecutive week of outflows, resulting in a total of $3.2 million leaving this market segment.
Interestingly, despite the recent rise in its price, Ethereum did not experience a corresponding surge in investor inflows. On the contrary, the last week saw ETH witnessing outflows of $2 million. This persistently negative trend throughout the year solidifies Ethereum’s position as the asset with the highest outflows so far.
Despite these fluctuations, digital asset investment products continue to attract significant attention and activity. Regarding trading volumes, these investment vehicles have consistently surpassed the yearly average of $1.4 billion.
The last week was marked by a remarkable achievement in the crypto market, as the total trading volume surged to an impressive $2.3 billion. This strong performance is indicative of a thriving market.
Additionally, it’s worth noting that investment products in this sector now represent a significantly larger share of the overall crypto volumes. Specifically, they accounted for 11% of the last week compared to the average of 2%.
Analyzing the geographical distribution of these inflows, it becomes evident that North America has emerged as the primary hub for digital asset investment. The US saw inflows totaling $109 million, while Canada followed with $28 million. However, minor outflows were observed in Europe, except Switzerland, which experienced minor inflows.
The combination of Bitcoin’s significant inflows and the ongoing outflows from short Bitcoin investment products has had a notable impact on the management of assets in this space. Since reaching its peak of $198 million in April, the total assets under management for short bitcoin products have dramatically declined to a mere $55 million.
As for other digital assets, altcoins such as Solana, Polygon, and Litecoin saw modest inflows ranging between $0.3 million and $0.5 million, further diversifying the investment landscape.
Nonetheless, as investors navigate this ever-evolving landscape, observing how these trends continue to shape the digital asset investment ecosystem moving forward will be fascinating.
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