In the past week, digital asset investment products have seen a massive increase in inflows, totaling $1.44 billion. This brings the year-to-date (YTD) inflows to an astonishing $17.8 billion, breaking the previous record. Despite this surge in inflows, trading volumes remain relatively low at $8.9 billion for the week, compared to the annual 7-day average of $21 billion. Bitcoin continues to be the dominant player, with the fifth-largest weekly inflow on record at $1.35 billion. On the contrary, short-bitcoin products saw significant outflows, with $8.6 million leaving the market – the largest weekly outflow since April.
According to CoinShares’ latest Digital Asset Fund Flows Weekly Report, the increase in inflows can be attributed to investors taking advantage of price weakness. This may have been influenced by the German government’s BTC sales and a shift in sentiment due to lower-than-expected CPI figures in the US. Among altcoins, Ethereum saw a notable increase in inflows, with $72 million entering the market. This surge in inflows is likely driven by anticipation of the potential approval of a spot ETF in the US. Other altcoins such as Solana, Avalanche, and Chainlink also saw positive inflows of $4.4 million, $2 million, and $1.3 million, respectively.
The United States continues to lead in terms of inflows, with $1.3 billion entering the market during the week. Positive sentiment was also observed globally, with countries like Switzerland, Hong Kong, and Canada seeing significant inflows of $57.5 million, $54.6 million, and $24.2 million, respectively. Switzerland, in particular, achieved a record for this year. Additionally, Germany, Australia, Sweden, and Brazil recorded weekly inflows of $11.7 million, $5.8 million, $1.6 million, and $1.3 million, showcasing a widespread interest in digital assets across different regions.
Overall, the digital asset market has shown resilience in the face of price weakness, with investors capitalizing on opportunities presented by market fluctuations. The surge in inflows indicates growing confidence in digital assets as a long-term investment option, with both institutional and retail investors actively participating in the market. As regulatory clarity improves and institutional adoption increases, the digital asset market is poised for further growth and development in the coming months.