Digital Asset Fund Inflows Reach $78m as Trading Volumes Soar to $1.13bn: Coinshares

Bitcoin Hodlers Make Self-Custody Moves After FTX Fiasco

Digital Asset Investment products experienced a popularity surge in the past 14 days or so after about 10 weeks of severe drops.

The reports indicate a rising trend in the digital asset fund inflows, with $78 million flowing in last week, a twofold surge from the preceding one, whose inflow was over $25 million.

Europe and Bitcoin Won Big in Inflows

As the CoinShares data outrightly indicates, Bitcoin emerged as the primary beneficiary in the period. According to the statistics, Bitcoin Digital Asset Funds saw inflows amounting to about $43 million in the week.

However, this didn’t prevent some investors from capitalizing on Bitcoin’s recent price strength to add to short-Bitcoin positions, which attracted inflows of $1.2 million.


Interestingly, the boom in inflows was not at all universal. Regionally, there was a stark divide, with Europe accounting for 90% of the inflows, while the U.S. and Canada combined saw just $9 million.

The latest two-week inflow increase coincided with another 37% increase in trading volume for exchange-traded products, which surged to $1.13 billion, suggesting a bullish sentiment within the digital assets market.

Before the two-week inflow period, there was a 10-week drought period, where about $450 million flowed out of the markets. There were only two very low recorded weekly inflows in these ten weeks.

The analytical data by Bloomberg and Coinshares indicate that the largest outflow this year was reported at around mid-March, on week 10, at about $260 million. On the contrary, this year’s largest inflow was about $250 million around late June or early July.

New Ethereum ETFs Fail to Impress as Solana Thrives

The newly launched six Ethereum-focused ETFs in the U.S. failed to generate the expected enthusiasm. Despite high anticipation, these ETFs only managed to attract under $10 million in their first week. This is a weak response compared to the launch of similar products associated with BTC, which attracted over a billion in a week.

According to analyst James Butterfield of Coinshares blog, this lukewarm response suggests a “poor investor appetite for digital assets at present, and unfair to compare to the Bitcoin futures ETF launches in October 2021, as appetite was much higher for the assets class overall.”

As Ethereum saw a fading reaction, Solana had some surge in popularity, recording weekly inflows of $24 million. This is the largest since March 2022, according to the Coinshares reports.

With Ethereum’s weak performance, analysts suggest that Solanas product’s performance suggests a possible shift in the crypto community, with SOL becoming the preferred altcoin.

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