The year 2024 has started on a positive note for crypto asset investment products. According to CoinShares, there have been impressive total inflows of $151 million in the first week of the year. While Bitcoin attracted the largest share of this inflow, Ethereum was close behind. Surprisingly, Cardano also experienced notable inflows compared to other altcoins.
Institutional investors showed a keen interest in Cardano-based investment products, pouring in a significant $3.7 million last week. This amount is considerably higher than the average inflows recorded in 2023. Following Cardano, Avalanche saw the second-highest inflow of $2 million. Litecoin and XRP also witnessed modest inflows of $1.3 million and $0.9 million, respectively. Multi-asset products received a total inflow of $5.4 million.
Interestingly, Cardano seems to have drawn attention away from Solana, which was frequently favored by investors in 2023. During the first week of the year, data from CoinShares revealed that Solana registered a net flow of $5.3 million. Additionally, Short Bitcoin products experienced a net outflow of $1 million. This brings its total outflows over the last nine weeks to $7 million.
Bitcoin’s enduring popularity among investors was evident in the first week of 2024. It started the year with a weekly net inflow of $113 million, representing 3.2% of the total assets under management. Ethereum followed closely behind with a net inflow of $29.6 million. These two cryptocurrencies continue to attract significant attention and financial support from investors.
The United States remained the dominant player in the crypto market, with exchanges in the country recording a weekly net inflow of $83 billion. This impressive figure represents 55% of the total inflow during the first week of the year. Germany and Switzerland were the next active regions, with net inflows of $32.5 million and $24.9 million, respectively. They accounted for 21% and 17% of the total inflow, respectively.
CoinShares attributes the substantial inflows to the growing interest in spot Bitcoin ETFs, particularly in the United States. Proponents of these ETFs have been advocating for their approval, fostering a bullish sentiment for Bitcoin. Now that the Bitcoin ETFs have gained regulatory approval, the market awaits their impact on the overall crypto investment landscape.
Cardano has also benefited significantly from its expanding ecosystem, development activities, and presence in the decentralized finance (DeFi) sector. These factors have contributed to the positive sentiment around Cardano, making it an attractive investment option for many. At the time of writing, Cardano (ADA) is trading at $0.5926, having outperformed numerous large market cap altcoins with a notable 15.55% increase in the past 24 hours. Analysts predict a surge for Cardano in 2024, with some setting a price target of $6.
Invest with Caution
It is crucial to remember that investing in cryptocurrencies carries inherent risks. Therefore, all potential investors are strongly advised to conduct their own research before making any investment decisions. The information presented in this article is for educational purposes only and does not represent the opinions of NewsBTC regarding buying, selling, or holding any investments.