Recent weeks have seen a massive surge in digital asset investments, with inflows totaling $346 million, led by Bitcoin and Ethereum.
Investments in digital asset products have surged recently, marking a significant trend in the crypto market. Last week, these products experienced an influx of $346 million in capital, setting a record for the largest weekly investment during a continuous nine-week period of positive flows.
According to CoinShares report, Bitcoin alone attracted $312 million in new investments last week, with Bitcoin’s year-to-date inflows exceeding $1.5 billion. Enhanced activity in exchange-traded products (ETPs) related to Bitcoin has been observed, with these products accounting for 18% of all Bitcoin spot trading volumes last week.
Ethereum also recorded $34 million in inflows last week, contributing to a four-week total of $103 million. This marks a significant reversal from earlier trends of outflows, signaling a shift in investor sentiment towards Ethereum.
Regionally, Canada and Germany have been at the forefront of these inflows, contributing 87% of the total. The U.S., on the other hand, has seen relatively modest participation, with only $30 million in inflows last week. This could be attributed to investors awaiting the launch of a spot-based ETF in the U.S.
These developments suggest a renewed investor interest and confidence in digital assets, as evidenced by the increasing inflows and the rise in total assets under management to $45.3 billion, the highest in over 18 months. The anticipation of a new ETF in the U.S. and the general bullish trend in the market since late 2021 have been key drivers behind this positive shift.