In recent events, digital asset investment products have witnessed an impressive streak of four consecutive weeks of inflows, amassing $66 million. This brings the cumulative influx over the past four weeks to $179 million. The surge in investment can be attributed to recent price hikes, resulting in a 15% surge in Total Assets under Management (AuM) since their September nadir, now standing at nearly $33 billion, marking the highest point since mid-August.
According to Coinshares report, the most recent uptick in inflows can be largely attributed to the anticipation surrounding the imminent launch of a spot bitcoin ETF in the United States. Nevertheless, compared to the initial surge of funds that followed Blackrock’s announcement in June, where four consecutive weeks of inflows tallied a staggering $807 million, the current inflow figures appear notably modest. This suggests that despite the favorable outcome of the Grayscale vs. SEC court ruling, investors are treading with greater caution this time.
Digital Asset Influx Trends
Last week, 84% of the total investment in Digital Assets inflows were directed towards bitcoin products, which resulted in an impressive $315 million year-to-date influx. However, the recent price surge led to a $23 million influx in short-bitcoin positions. By the end of the week, these positions had been substantially reduced, resulting in a net inflow of just $1.7 million. This indicates a decrease in confidence among short sellers.
Despite ongoing concerns, Ethereum struggled last week, witnessing outflows of $7.4 million, making it the sole altcoin to experience a downturn. This stands in sharp contrast to Solana, which saw a substantial $15.5 million influx during the same period. This surge brings Solana’s year-to-date inflows to an impressive $74 million, constituting a substantial 47% of the total Assets under Management (AuM).
The popularity and investment in digital assets are increasing day by day. However, it is still being determined whether the cautious approach of investors towards these assets will continue or not. It remains to be seen if the market’s dynamism will lead to new trends or opportunities in the upcoming weeks.