In the midst of ongoing price weakness in the digital asset market, investment products experienced a surge in buying activity, with inflows reaching $1.44 billion in a single week. This brought the year-to-date (YTD) inflows to an impressive $17.8 billion, breaking the previous record set three years ago. Despite the strong inflows, trading volumes remained relatively low at $8.9 billion for the week, compared to the annual 7-day average of $21 billion.
Bitcoin continued to dominate the charts, securing the fifth-largest weekly inflow on record at $1.35 billion. However, short-bitcoin products saw significant outflows, with $8.6 million exiting, marking the largest weekly outflow since April. Among altcoins, Ethereum stood out by attracting $72 million in inflows, the highest figure since March. This surge is likely driven by the anticipation of a potential approval of a spot ETF in the US. Other altcoins such as Solana, Avalanche, and Chainlink also saw positive inflows, receiving $4.4 million, $2 million, and $1.3 million, respectively.
The United States continued to lead in terms of inflows with $1.3 billion for the week. Positive sentiment was observed globally, with countries like Switzerland, Hong Kong, and Canada notable for their significant inflows of $57.5 million, $54.6 million, and $24.2 million, respectively. Switzerland even set a record for the year in terms of inflows. Other countries such as Germany, Australia, Sweden, and Brazil also recorded weekly inflows, showing strong investor interest across a wide range of digital assets.
CoinShares attributed the surge in inflows to investors capitalizing on price weakness, influenced in part by the German government’s BTC sales and a shift in sentiment due to lower-than-expected CPI figures in the US. The anticipation of potential ETF approvals in the US also contributed to the increased inflows into digital assets.
The significant uptick in inflows into digital asset investment products, despite the price weakness in the market, reflects a growing interest and confidence in the asset class among investors globally. With countries like the United States, Switzerland, and Hong Kong leading the way, the trend towards increased adoption of digital assets seems to be continuing, driven by factors such as regulatory developments and market sentiment.
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