Digital asset investment products experienced a significant surge in inflows, reaching an impressive $346 million last week. This marked the largest weekly influx in a continuous nine-week streak, with Bitcoin standing out as a major contributor to this substantial growth.
Bitcoin Dominates Weekly Inflows
According to the CoinShares Digital Asset Fund Flows Weekly Report, Bitcoin witnessed inflows totaling $312 million in the past week alone. This robust performance has propelled the year-to-date inflows for Bitcoin to just over $1.5 billion. Interestingly, the surge in Bitcoin investments coincides with a trend of short-sellers capitulating, signaling a shift in market sentiment.
Ethereum, the second-largest cryptocurrency by market cap, also experienced a positive momentum. The report indicated that Ethereum saw inflows of $34 million last week, contributing to a four-week run totaling $103 million. This upswing marked a crucial reversal in sentiment, nearly offsetting the outflows observed earlier in the year.
The primary driving force behind this remarkable uptick in digital asset investments is the anticipation of a spot-based Exchange-Traded Fund (ETF) launch in the United States. This nine-week streak is the most substantial since the bullish market trends witnessed in late 2021. The combination of increasing cryptocurrency prices and consistent inflows has propelled the total assets under management (AUM) to an impressive $45.3 billion, reaching the highest point in over one and a half years.
Breaking down the regional impact, Canada and Germany dominated the scene, accounting for 87% of the total inflows. Surprisingly, the United States, which is presumably waiting for the ETF launch, exhibited lower participation, with only $30 million in inflows for the week.
For Bitcoin, the strong inflows contributed to a year-to-date total that now exceeds $1.5 billion. Concurrently, short-sellers experienced their third consecutive week of outflows, totaling $0.9 million. The overall assets under management for Bitcoin have witnessed a 61% decline since reaching its peak in April 2023. Notably, volumes of Exchange-Traded Products (ETPs) as a percentage of total spot Bitcoin volumes remained notably high at 18% last week, highlighting the continued preference for ETPs in gaining exposure to the cryptocurrency.
In addition to Bitcoin and Ethereum, other cryptocurrencies also attracted investor interest. Solana, Polkadot, and Chainlink observed inflows totaling $3.5 million, $0.8 million, and $0.6 million, respectively.
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