Key Takeaways:
- Digital asset investment products witness two consecutive weeks of inflows, totaling $334m.
- Bitcoin dominates with a massive turnaround, accounting for 98% of the inflows.
- Blockchain equities break the trend, reporting inflows of $6.8m after nine weeks of outflows.
The cryptocurrency market is seeing a wave of green as investment inflows into digital asset products gather momentum. Over the last two weeks, there has been an aggregate inflow of $334 million, representing almost 1% of the total assets under management (AuM).
This consistent capital infusion signifies a growing interest among investors. Bitcoin, the crypto king, is undoubtedly the investor favorite.
In the last fortnight, it has received inflows of $125 million, which astonishingly makes up 98% of the total digital asset flows. This massive influx into Bitcoin investment products has helped them shift from a net outflow position to a net inflow year-to-date. This is a remarkable turnaround given that just two weeks ago there was a net outflow of $171 million.
What’s more, Bitcoin’s recent price appreciation played a significant role in this trend. The upswing in price levels has propelled the AuM to soar to $37 billion, marking its pinnacle since early June 2022 and matching the year’s average.
Trading activity remains robust, clocking in at $2.3 billion for the week, a good leap over the year-to-date average of $1.5 billion. While Bitcoin is basking in the limelight, certain altcoins have also caught investors’ attention.
Ethereum took the lead among altcoins with inflows totaling $2.7 million, trailed by Cardano, Polygon, and XRP. In a striking development, blockchain equities have made a comeback.
After enduring a dry spell for nine weeks, last week they observed inflows amounting to $6.8 million. This could signify a renewed investor appetite for blockchain technology stocks, possibly owing to the sector’s prospects or as a diversified exposure to the cryptocurrency space.
It’s critical to note that not all assets enjoyed inflows. Short-bitcoin investment products saw an outflow of $0.9 million, marking the 10th consecutive week. This might suggest that investors are currently more bullish on Bitcoin.
The recent uptrend in investment inflows, predominantly dominated by Bitcoin, indicates a possible shift in investor sentiment towards optimism in the cryptocurrency market. What’s more to come, time will tell.
Source
https://blog.coinshares.com/volume-138-digital-asset-fund-flows-weekly-report-e3fcb270729
