Digital asset investment products experienced significant inflows last week, reaching $1.18 billion, a figure that demonstrates market participants’ continued interest and confidence in digital assets. It is worth noting that last week’s trading volume hit a record high of $17.5 billion, well above the average weekly level of $2 billion in 2022, indicating that the digital asset market is experiencing a significant wave of activity growth.
The United States emerged as the main driver of capital inflows, attracting $1.24 billion in investment. This likely reflects U.S. investors’ growing interest in the digital asset market and confidence in its potential returns. In contrast, Europe has experienced some small outflows, which may be affected by some geopolitical and regulatory factors.
Among digital assets, Bitcoin remains one of the top choices for investors, with inflows of US$1.16 billion last week, accounting for 3% of total assets under management (AuM). Meanwhile, short selling on Bitcoin also saw small inflows, totaling $4.1 million. This may indicate that there is uncertainty in the market about the future trend of Bitcoin, and some investors may be looking for arbitrage opportunities in market fluctuations.
Ethereum and XRP saw inflows of $26 million and $2.2 million respectively, showing investor confidence in the two major alternative digital assets. However, Solana has only seen inflows of $500,000 in the last week, which may require further observation to see how it performs in the market.
On the other hand, blockchain stocks also experienced significant inflows totaling $98 million, bringing the total inflows over the past seven weeks to $608 million. This may reflect investor optimism about blockchain technology and related companies.
Overall, the digital asset market has shown strong vitality, with investor inflows demonstrating confidence in the sector. However, the market still needs to be alert to potential fluctuations and risks to maintain a cautious investment attitude.
