Digital asset investment products have seen inflows for the third consecutive week, with this week’s inflows totaling $1.05 billion, according to CoinShares. This brings the total year-to-date inflows to a record high of $14.9 billion. James Butterfill, an analyst at CoinShares, highlighted these developments in the weekly report, noting that the recent inflows represent the highest level so far this year. The surge is primarily driven by significant investments in Bitcoin exchange-traded products (ETPs).
Bitcoin ETPs attracted a substantial inflow of $1.01 billion last week, indicating strong investor confidence. On the other hand, short-Bitcoin products faced outflows of $4.3 million for the week. This suggests a broadly positive sentiment among investors, likely influenced by interpretations of the Federal Open Market Committee (FOMC) minutes and recent macroeconomic data.
Ethereum also experienced significant inflows, with $36 million invested this week, the highest since March. This surge is likely an early reaction to the approval of Ethereum ETFs in the United States, contributing to the overall bullish sentiment in the crypto market.
Regionally, the majority of inflows were concentrated in the United States, with $1.03 billion. Grayscale, a major player in the digital asset space, saw its outflows decrease significantly to just $15 million for the week. Germany and Switzerland also contributed to the positive trend, with inflows of $48 million and $30 million, respectively.
However, Hong Kong’s performance was less optimistic. After a positive launch of Bitcoin spot-based ETFs, which attracted $300 million in the first week, the region experienced outflows of $29 million last week.
The total assets under management for digital asset ETPs have reached $98.5 billion, supported by recent price increases. Additionally, weekly ETP trading volumes have risen by 28% to $13.6 billion, indicating increased market activity. Other cryptocurrencies, such as Solana, also saw positive movements, with inflows of $8 million last week, reflecting growing investor interest.
The continuous inflows into digital asset investment products demonstrate the growing institutional interest and confidence in the cryptocurrency market. With a record $14.9 billion in year-to-date inflows, the sector is poised for further growth, driven by regulatory developments and increasing investor adoption.