During the past week, digital asset investment products experienced record-breaking inflows amounting to $1.44 billion, contributing to the year-to-date inflows of $17.8 billion. This surge in investment activity shattered the previous record set three years ago. Despite the strong inflows, trading volumes remained relatively low at $8.9 billion for the week, falling short of the annual 7-day average of $21 billion. Bitcoin continued to dominate the market with the fifth-largest weekly inflow on record at $1.35 billion, while short-bitcoin products saw significant outflows of $8.6 million, marking the largest weekly outflow since April.
Reasons for Inflows
According to CoinShares’ Digital Asset Fund Flows Weekly Report, the surge in inflows can be attributed to investors capitalizing on price weakness. Factors influencing this include the German government’s BTC sales and a shift in sentiment due to lower-than-expected CPI figures in the US. Among altcoins, Ethereum stood out with $72 million in inflows, the highest since March, driven by anticipation of the potential approval of a spot ETF in the US. Other altcoins like Solana, Avalanche, and Chainlink also saw positive inflows, further diversifying investor interests in digital assets.
Global Investment Trends
The United States led in terms of regional 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 specifically achieved a record for the year. Germany, Australia, Sweden, and Brazil also recorded weekly inflows, showcasing a widespread interest in digital assets across different regions despite overall market conditions.
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