Investors flocked to newly launched spot Bitcoin ETFs in the US last week. Thus, digital asset investment products saw a record inflow of $708 million. According to the latest report by CoinShares, a digital asset research and investment firm, year-to-date inflows for digital asset funds have reached $1.6 billion. Additionally, total global assets under management stood at $53 billion. While the leading altcoin Ethereum saw significant outflow, its rival Solana witnessed record inflow.
Digital asset investment products see record inflows
The report also revealed that trading volumes in exchange-traded products (ETPs) fell to $8.2 billion from $10.6 billion the previous week. However, it still remained well above its weekly average of $1.5 billion in 2023. These volumes account for 29% of Bitcoin’s total transactions on trusted exchanges. This shows that there is a high demand for a regulated and transparent investment in BTC.
cryptokoin.comAs you follow from , the first spot transaction Bitcoin ETFs entered the market in January. These products attracted the attention of both individual and institutional investors. Thus, spot Bitcoin ETFs became the main driver of US market inflows. The new ETFs, which track the price of Bitcoin futures contracts rather than the spot price, saw inflows of US$1.7 billion last week. Since its inception, it has reached a total of 7.7 billion US dollars. New ETFs have inflowed an average of $1.9 billion over the past four weeks. Thus, it exceeded the expectations of many analysts and observers. However, established issuers like Grayscale saw $6 billion in outflows.
While there was an exit from Ethereum and Avalanche, inflows to Solana broke a record
Bitcoin has been the dominant asset class in terms of inflows, capturing 99% of the total last week. The price of the cryptocurrency rose above $40,000 after a brief decline. During this period, Bitcoin funds saw an inflow of $703 million. Short-Bitcoin products saw small outflows of $5.3 million. These products allow investors to bet against the price of Bitcoin. Therefore, this decline reflects a change in sentiment among traders.
There is a mixed outlook on other digital assets. Ethereum rival Solana recorded a significant inflow of $13 million. Solana is gaining popularity among developers and users because it offers low fees and high efficiency. Two other smart contract platforms, Ethereum and Avalanche, saw outflows of $6.4 million and $1.3 million, respectively. However, Litecoin (LTC), Cardano (ADA) and Ripple (XRP) witnessed outflows, albeit low. Blockchain stocks, which include companies in the digital asset industry, saw an outflow of $147 million from one issuer last week. However, this was offset by $11 million in inflows from other issuers. Blockchain stocks are performing well on the stock market as they benefit from growth and innovation in the crypto space.
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