For the third consecutive week, digital asset investment products have seen a rise in inflows, according to CoinShares. The total inflows for this week amount to $1.05 billion, pushing the year-to-date total to a new high of $14.9 billion. James Butterfill, an analyst at CoinShares, shared these insights in the weekly report, emphasizing that the recent inflows mark a record high for the year so far, largely due to substantial investments in Bitcoin exchange-traded products (ETPs).
Bitcoin took the lead in digital asset inflows this week, with Ethereum also contributing positively to the market. Bitcoin ETPs attracted a significant inflow of $1.01 billion, showcasing strong investor confidence. On the contrary, short-Bitcoin products experienced outflows of $4.3 million for the week, indicating a generally positive sentiment among investors, possibly influenced by interpretations of the Federal Open Market Committee (FOMC) minutes and recent macroeconomic data.
Ethereum also saw notable inflows, with $36 million invested this week, the highest since March. This surge is seen as an early response to the approval of Ethereum ETFs in the United States, contributing to the overall bullish sentiment in the crypto market this week.
Regionally, the United States led the way with the majority of inflows amounting to $1.03 billion. Grayscale, a prominent player in the digital asset space, saw a significant decrease in outflows to just $15 million for the week. Germany and Switzerland also contributed positively, with inflows of $48 million and $30 million, respectively.
However, the performance in Hong Kong was less promising. Despite a strong initial launch of Bitcoin spot-based ETFs, with $300 million in the first week, the region experienced outflows of $29 million last week.
Looking at 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 like Solana also saw positive movements, with inflows of $8 million last week, reflecting a growing interest from investors.
The consistent inflows into digital asset investment products underscore the growing 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.