Digital asset investment products have seen inflows for the third consecutive week, with this week’s total reaching $1.05 billion, according to CoinShares. The year-to-date inflows have now reached a record high of $14.9 billion. James Butterfill, an analyst at CoinShares, highlighted these developments in their weekly report, noting that the recent inflows represent the highest recorded for the year so far. This surge has been primarily driven by significant investments in Bitcoin exchange-traded products (ETPs).
Bitcoin ETPs experienced a substantial inflow of $1.01 billion last week, indicating strong investor confidence. Conversely, short-Bitcoin products faced outflows amounting to $4.3 million. This suggests a broadly positive sentiment among investors, likely influenced by interpretations of the Federal Open Market Committee (FOMC) minutes and recent macroeconomic data.
In addition, Ethereum saw significant inflows of $36 million this week, the highest since March. This surge is likely an early reaction to the approval of Ethereum ETFs in the United States, leading to a bullish market sentiment across the entire crypto market.
Regionally, the majority of inflows were concentrated in the United States, accounting for $1.03 billion of the total inflows. Notably, Grayscale, a prominent player in the digital asset space, saw a significant decrease in outflows, amounting 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 experienced less optimistic performance. After a positive initial launch of Bitcoin spot-based ETFs, which brought in $300 million in the first week, the region faced outflows of $29 million last week.
In terms of broader market trends, the total assets under management for digital asset ETPs have now reached $98.5 billion, boosted by recent price increases. Weekly ETP trading volumes have also risen by 28% to $13.6 billion, indicating increased market activity. Other cryptocurrencies, such as Solana, have also seen positive movements, with inflows of $8 million last week, reflecting growing investor interest.
These continuous inflows into digital asset investment products demonstrate the increasing 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.
