Recently, digital asset funds have received a net inflow of US$29 million. According to CoinShares, the improvement in this positive trend may come from lower-than-expected annual inflation growth in July, reducing the likelihood of another interest rate hike in September. Bitcoin-related digital asset investment products have attracted $27 million in inflows over the past three weeks, following outflows of $144 million in the three weeks before that.
From a regional perspective, Canada saw the most active fund activity, attracting $24 million in inflows. Meanwhile, Switzerland was the only country to see larger inflows, totaling $8 million.
Despite low market trading volumes, the latest fund flow data shows that market sentiment for Bitcoin and other cryptocurrency investment products remains positive. In June this year, BlackRock, the world’s largest asset management company, applied for a spot Bitcoin exchange-traded fund (ETF). Subsequently, a series of well-known Wall Street financial institutions including Commonwealth Investment, Wisdom Tree and Fidelity Investment Follow suit.
Cathie Wood’s ARK Invest has also applied to the U.S. Securities and Exchange Commission (SEC) to launch a spot Bitcoin ETF. However, last week the securities regulator delayed its decision on approving this particular fund. The SEC said in a filing on Friday that it was seeking public comment on an amendment to the application, effectively delaying the date for a final decision.