James Butterfill, Head of Research at European digit asset investment firm CoinShares, reported in a blog post published earlier today a $2 billion inflow into digital asset investment products over the past week. This influx extends the recent five-week trend of positive inflows, now totaling $4.3 billion. Trading volumes in Exchange Traded Products (ETPs) rose sharply, reaching $12.8 billion for the week, a notable 55% increase from the previous week.
Bitcoin remained the primary focus, drawing in $1.97 billion in inflows within the week. This substantial investment underscores Bitcoin’s continued dominance in the digital asset market. Conversely, short-Bitcoin products experienced outflows for the third consecutive week, totaling $5.3 million. Ethereum also saw notable activity, with $68.9 million in inflows, marking its best week since March. This surge is likely in response to the SEC’s unexpected decision to approve spot-based ETFs, which has boosted investor confidence.
Regionally, the United States led the inflows, contributing $1.98 billion. The first day of the week recorded the third-largest daily inflow on record, highlighting strong investor activity. The iShares Bitcoin ETF emerged as a significant player, now surpassing Grayscale with $21 billion in Assets under Management (AuM).
Butterfill noted the broad-based nature of the inflows. “Unusually, inflows were seen across almost all providers, with a continued slowdown in outflows from incumbents. We believe this turnaround in sentiment is a direct response to weaker-than-expected macro data in the US, bringing forward monetary policy rate cut expectations,” Butterfill stated.
Altcoins also attracted some attention. Fantom and XRP were notable, with Fantom seeing inflows of $1.4 million and XRP $1.2 million. This diversified interest indicates broader confidence in the digital asset market.
In terms of providers, iShares ETFs in the USA led with $948 million in inflows, followed by Fidelity ETFs with $680 million. Grayscale Investments faced outflows of $29 million, indicating a shift towards other providers like iShares.
The overall positive price action has driven total assets under management above the $100 billion mark for the first time since March this year. This milestone reflects renewed investor confidence in digital assets, supported by significant inflows into major cryptocurrencies and notable participation from altcoins and regional markets.
Featured Image via Pixabay