Digital assets funds see third week of inflows at $1.05bn
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Digital Asset Investment Sees Record Inflows, Driven by Bitcoin ETPs
Digital asset investment products experienced inflows for the third consecutive week, amassing a total of US$1.05 billion. This brings the cumulative inflows for the year to an all-time high of US$14.9 billion.
Bitcoin ETPs Lead the Surge
The bulk of these inflows were directed towards Bitcoin Exchange-Traded Products (ETPs), which garnered US$1.01 billion last week alone. This significant investment in Bitcoin ETPs reflects growing investor confidence and interest in Bitcoin as a primary digital asset.
Ethereum Gains Momentum
Ethereum also saw a notable increase in inflows, attracting US$36 million over the past week. This marks the highest inflow for Ethereum since March and is likely an early response to the recent approval of Ethereum ETFs in the United States. This regulatory milestone has evidently sparked renewed investor interest in Ethereum.
Weekly Crypto Asset Flow Insights
The recent price increases in digital assets have driven the total value of digital asset ETPs to US$98.5 billion. Correspondingly, weekly trading volumes for these ETPs have surged by 28%, reaching US$13.6 billion.
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Regional Inflow Distribution
Regionally, the majority of the inflows were concentrated in the United States, which saw US$1.03 billion in new investments. Grayscale, a major player in the crypto investment space, experienced a significant reduction in outflows, with only US$15 million exiting last week. Germany and Switzerland also contributed to the inflows, with US$48 million and US$30 million, respectively.
However, not all regions mirrored this positive trend. Following the initial strong performance of Bitcoin spot-based ETFs in Hong Kong, which saw US$300 million in inflows during their launch week, there were outflows of US$29 million last week.
Shift in Investor Sentiment
The significant inflows into Bitcoin ETPs, despite recent price rises, indicate a broadly positive investor sentiment. Conversely, short-Bitcoin products experienced outflows totaling US$4.3 million, suggesting that investors are less inclined to bet against Bitcoin at this time. This shift in sentiment is likely influenced by investor interpretations of the Federal Open Market Committee (FOMC) minutes and recent macroeconomic data, which have been perceived as mildly dovish.
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