Digital asset investment products saw their highest weekly inflows since July 2022, attracting a staggering $199 million. This influx reversed almost half of the nine weeks of continuous outflows and signaled a notable change in investor sentiment. Bitcoin emerged as the primary beneficiary of this inflow surge.
CoinShares, a leading digital asset investment research provider, revealed that with a staggering $187 million pouring into the market last week, Bitcoin claimed a whopping 94% of the total inflows.
The coin’s resurgence is truly remarkable, given that short-bitcoin products have experienced nine consecutive weeks of outflows, totaling $4.9 million.
However, the newfound positive sentiment did not extend to altcoins, which only witnessed minor inflows. The overall inflow trend remained concentrated on Bitcoin, indicating that investors are still focusing primarily on this dominant digital asset.
The notable rebound in digital asset investment products coincided with a significant uptick in exchange-traded product (ETP) trading volumes. Clocking in at 170% higher than the average for the year, ETP trading volumes for the week reached an impressive $2.5 billion. This surge further strengthens the argument for a revival in investor confidence.
Experts attribute this renewed positive sentiment to recent announcements from esteemed ETP issuers who have filed for physically backed exchange-traded funds (ETFs) with the US Securities and Exchange Commission (SEC).
These filings have generated considerable excitement within the crypto community and may have contributed to the recent surge in investment.
The total assets under management (AuM) for digital asset investment products have now reached a substantial $37 billion, marking the highest point since the collapse of 3 Arrows Capital.
This remarkable milestone showcases cryptocurrencies’ growing maturity and acceptance within traditional investment circles.
Ethereum Struggles to Keep Pace: Appetite For Bitcoin Remains Strong
Unsurprisingly, Bitcoin continues to lead the pack. On the flip side, short-bitcoin products have witnessed outflows for nine consecutive weeks, amounting to $4.9 million. Cumulatively, these outflows accounted for 60% of the total AuM.
While Bitcoin basks in its glory, Ethereum, its closest competitor, seems to be lagging behind. Ethereum recorded a modest inflow of $7.8 million, merely 0.1% of the AuM relative to Bitcoin’s impressive 0.7% inflow. This discrepancy suggests that the current appetite for Ethereum lags significantly behind that of Bitcoin.
The ripple effect of this positive sentiment failed to reach most altcoins, with only marginal inflows observed in XRP and Solana, totaling a mere $0.24 million and $0.17 million, respectively.
However, the improved market sentiment did manage to coax some investors into purchasing multi-asset investment ETPs, resulting in $8 million in inflows last week.
Nevertheless, as the cryptocurrency market evolves, the recent surge in digital asset investment products demonstrates a renewed faith in Bitcoin’s potential.
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