Digital asset investment has seen a major change in investor sentiment, including Bitcoin, as reported by CoinShares. With year-to-date inflows now at $230m and the 4th consecutive week of inflows totaling $76m, it is clear that 2023 is shaping up to be a promising year for the cryptocurrency market.
As reported by Tronweekly, previously CoinShares reported that digital asset investment products experienced the largest inflows since July 2022, with $117 million entering the market. As a result, the total AuM has increased by 43% from November 2022 lows, reaching $28 billion.
Most of these inflows, amounting to $116 million, were invested in BTC, with minor amounts going towards short-bitcoin at US$4.4 million. However, multi-asset investment products have seen outflows for nine consecutive weeks, totaling $6.4 million, indicating a preference for selective investments.
Bitcoin Dominates Investment Flows
BTC continues to be the primary focus of investors, accounting for a staggering 90% of the total inflows last week, with a total of US$69m. It highlights the growing confidence in the world’s largest cryptocurrency and its potential for long-term growth.
While other cryptocurrencies saw minor inflows, Ethereum saw only US$0.7m of inflows despite the improving clarity around unstaking. The minor inflows were into Solana ($0.5m), Cardano ($0.6m), and Polygon ($0.3m). However, Polygon also saw outflows of US$0.5m. It further emphasizes the dominance of BTC in the digital asset market.
Short-Bitcoin Gains Momentum
Despite the dominance of long-Bitcoin inflows, short-Bitcoin has been making gains with inflows totaling US$8.2m over the same period. While the short-Bitcoin inflows remain relatively small in comparison, the last three weeks inflows total US$38m, representing 26% of the total AuM.
Although the trade so far hasn’t worked well year to date, with total short-Bitcoin AuM having fallen by 9.2%, the inflows are still meaningful from a relative scaling perspective.
Regionally, the majority of inflows were focused on the US, Canada, and Germany, with inflows of $38m, $25m, and $24m, respectively. Total investment assets under management have risen 39% year-to-date, reaching a high of $30.3bn, the highest it’s been since mid-August 2022.
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