Digital asset investment products have attracted significant attention from institutional investors. According to a recent CoinShares report, Bitcoin and Solana emerged as the leaders in institutional inflows. Bitcoin accounted for 99% of all flows into these investment products, with total inflows reaching $703 million. Solana followed at a distance with an inflow of $13 million, surpassing Ethereum, which only managed an inflow of $6.4 million.
Spot Bitcoin ETFs in the US have been making waves in the cryptocurrency market. These funds recorded an impressive inflow of $721 million last week, averaging $1.9 billion in inflows over the last four weeks since their launch. In total, these funds have attracted $7.7 billion in inflows. On the other hand, Grayscale’s GBTC has experienced significant outflows, contributing to the $6 billion recorded by these funds to date.
Recent weeks have seen a slowdown in outflows from GBTC, suggesting that investors are taking a more measured approach when it comes to taking profits. The inflows from other Spot Bitcoin ETFs have managed to overshadow GBTC’s outflows, indicating a shift in investor sentiment. Additionally, BlackRock’s IBIT recently surpassed GBTC in trading volume, a noteworthy achievement in the cryptocurrency market.
Trading volume in digital asset investment products experienced a dip in the past week. The total trading volume for Exchange Traded Products (ETPs) fell from $10.6 billion to $8.2 billion when compared to the previous week. This decline in trading volume was evident in the figures reported by Spot Bitcoin ETFs.
These ETFs recorded a daily trading volume of $924 million on February 1, marking the first time it fell below $1 billion. The trend continued the following day, with a combined trading volume of $922 million for Spot Bitcoin ETFs.
While the decline in trading volume may raise concerns, Bloomberg analyst Eric Balchunas reassures that there is no immediate cause for alarm. Balchunas explained in a social media post that a slow decline is typical after a highly anticipated and extensively marketed launch. Despite the decline, these ETFs have lived up to the hype and demonstrated their ability to attract institutional investors. Notably, BlackRock and Fidelity, the top two issuers by Assets under Management (AuM), hold over 134,358 BTC ($5.7 billion) for their Spot Bitcoin ETFs.
Moreover, these funds ranked among the top 10 ETF inflows in January, indicating a significant level of interest in the market and a promising sign of institutional adoption of Bitcoin.
Bitcoin and Solana continue to capture institutional interest, with Bitcoin dominating inflows into digital asset investment products. Spot Bitcoin ETFs in the US have seen substantial inflows, surpassing traditional offerings like GBTC. While trading volume experienced a temporary decline, this is not necessarily cause for concern. As the market matures, the gradual adoption of digital assets by institutional investors indicates a growing acceptance and recognition of their investment potential.
Disclaimer: This article is for educational purposes only. It does not constitute financial advice, and NewsBTC does not endorse buying, selling, or holding any investments. Investing in digital assets carries risks, and readers are advised to conduct their own research and make informed decisions. The information provided in this article should be used at your own risk.