In the midst of continued price weakness in the digital asset market last week, investment products experienced significant buying activity, with inflows reaching an impressive $1.44 billion. This brought the year-to-date inflows to a staggering $17.8 billion, breaking the previous record set three years ago. Despite the strong inflow, trading volumes remained 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 with $72 million in inflows, the highest figure since March, likely driven by anticipation of a potential approval of a spot ETF in the US. Other altcoins like Solana, Avalanche, and Chainlink also received positive inflows, showcasing strong investor interest in a diverse range of digital assets.
Regionally, the United States led with $1.3 billion in inflows for the week. Positive sentiment was observed globally, with Switzerland, Hong Kong, and Canada notable for their inflows of $57.5 million, $54.6 million, and $24.2 million, respectively. Switzerland achieved a record for the year in terms of inflows. Other countries like Germany, Australia, Sweden, and Brazil also recorded weekly inflows, demonstrating a widespread interest in digital assets across different regions.
In CoinShares’ latest Digital Asset Fund Flows Weekly Report, the surge in inflows was attributed to investors capitalizing on price weakness, influenced by various factors like the German government’s BTC sales and a shift in sentiment due to lower-than-expected CPI figures in the US. The inflows into altcoins, particularly Ethereum, also point towards optimistic anticipation of future developments in the digital asset market.
The significant inflows into digital asset investment products despite price weakness indicate a growing interest and confidence in the market. Investors worldwide are actively engaging with digital assets, both major ones like Bitcoin and emerging altcoins, showcasing a diverse and dynamic landscape in the crypto space. With global inflows surging, it will be interesting to see how this trend continues to evolve in the coming weeks and months.
