• Thu. Nov 28th, 2024

Digital Asset Inflows Reach $1.76 Billion, Marking 10 Weeks of Growth: CoinShares

Dec 5, 2023

In the past week, investments in digital asset products surged by $176 million, marking the 10th consecutive week of continuous inflows. The total inflow over this period reached $1.76 billion, constituting 4% of the assets under management (AuM).

This streak of inflows is the largest since October 2021, when the US witnessed the launch of futures-based ETFs.

Ethereum Breaks Streak of Negative Sentiment

Despite a 107% increase in total AuM this year, reaching $46.2 billion, it still falls significantly below the peak of $86.6 billion in 2021. Trading volumes for exchange-traded products (ETPs) remained high at $2.6 billion for the week, constituting 12% of total Bitcoin volumes, according to the latest CoinShares report.

While Bitcoin emerged as the “main beneficiary,” Ethereum also attracted significant inflows this week, extending a positive trend for five weeks and reaching a total of $134 million.

This past week alone, the world’s largest altcoin inflows accounted for a whopping $134 million. For the first time this year, net flows for Ethereum have turned positive at $10 million, marking a shift from an extended period of negative sentiment.

Bitcoin, on the other hand, dominated the digital asset products market, recording inflows totaling $133 million, while short-bitcoin, which had witnessed outflows for three consecutive weeks, saw inflows of $3.6 million last week.

Other prominent altcoins, such as Solana, XRP, and Cardano, recorded inflows of $4.3 million, $0.5 million, and $0.1 million, respectively, during the same period. Litecoin, however, stood out as an outlier despite an overall increase in institutional demand for crypto assets.

Global Focus

Geographically, the primary focus was on Canada, Germany, and the US, with inflows of $79 million, $57 million, and $54 million, respectively.

The digital asset manager’s report also observed minor outflows of $15 million were observed in Hong Kong. Although the overall AuM in the Asian region is relatively small, and the number of ETPs is limited, it stands out as one of the few regions experiencing net outflows year-to-date, the report stated.

Equities related to blockchain technology have seen inflows for seven consecutive weeks, and the most recent inflow of $17.4 million last week is the highest since July 2022.

The post Digital Asset Inflows Reach $1.76 Billion, Marking 10 Weeks of Growth: CoinShares appeared first on CryptoPotato.


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[Source: CryptoPotato]

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