Surge in Digital Asset Investments Following SEC ETF Approvals, Coinshares Reports

Digital asset investment products have witnessed significant inflows totaling $2 billion, marking a strong five-week streak that accumulates to $4.3 billion. As reported by Coinshares, this surge aligns with increased trading volumes and shifting monetary policy expectations.

Record-Breaking Week for Digital Assets as U.S. Ethereum ETF Approval Sparks $2 Billion Surge

Digital asset investment products, which include exchange-traded products (ETPs), saw trading volumes skyrocket to $12.8 billion last week, an increase of 55% from the previous week. According to researcher James Butterfill of Coinshares, this growth can be attributed to the weaker-than-expected macroeconomic data in the U.S., which has prompted investors to anticipate rate cuts sooner than expected.

In a particularly noteworthy development, bitcoin (BTC) led the charge with inflows of $1.97 billion, while ethereum (ETH) recorded its highest week of inflows since March, totaling $69 million. This activity was spurred by the unexpected decision by the Securities and Exchange Commission (SEC) to allow spot-based exchange-traded funds (ETFs), highlighting a significant shift in regulatory stance towards ether.

Regionally, the U.S. dominated the inflow landscape, adding $1.98 billion to digital asset investment products. Coinshares’ report highlights that Blackrock’s Ishares spot bitcoin ETF has now surpassed the Grayscale Bitcoin Trust (GBTC), with assets under management (AUM) reaching $21 billion. Despite the overall positive trend, short-bitcoin products experienced outflows for the third consecutive week, totaling $5.3 million, Butterfill’s analysis concludes.

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