Digital Asset Investment Products See $1.04 Billion Inflows, 12th Straight Week of Gains

Digital asset investment products experienced a significant surge in inflows last week, with a total of $1.04 billion flowing into the market. This marks the twelfth consecutive week of positive momentum, with total inflows for the period reaching $18 billion. The influx of funds, coupled with price increases, lifted total assets under management (AuM) to a record high of $188 billion.

Bitcoin investment products attracted $790 million in inflows, a decrease from the previous three-week average of $1.5 billion. This slowdown suggests a growing caution among investors as Bitcoin approaches its record highs. This sentiment is further supported by a minor $0.4 million inflow to short-bitcoin products, a reversal from the previous week's outflows.

Ethereum, on the other hand, saw its 11th straight week of inflows, adding $226 million and pushing the total for this period to $2.85 billion. On a relative basis, Ethereum’s weekly inflows have averaged 1.6% of its assets under management, notably higher than Bitcoin’s 0.8%. This points to a shift in investor sentiment towards Ethereum.

Other digital assets also saw inflows, with Solana leading at $21.6 million, followed by XRP at $10.6 million, and Sui at $1.6 million. Chainlink and Cardano also attracted modest but steady inflows, with $0.5 million and $0.4 million, respectively. The multi-asset product was the only category to see outflows, with $12.4 million leaving the market.

The United States led regional inflows with $1 billion, followed by Germany at $38.5 million and Switzerland at $33.7 million. Australia also saw a smaller inflow of $4.1 million. In contrast, Canada and Sweden experienced outflows of $29.3 million and $19.2 million, respectively. Brazil and China Hong Kong also saw capital leaving, with outflows of $9.7 million and $3 million, respectively.

The consistent inflow of funds into digital asset funds, coupled with the strong performance of Ethereum, suggests that the crypto market is poised for further growth. The record-breaking inflows and the surge in AuM highlight the increasing acceptance and adoption of crypto investment products among investors. The shift in investor sentiment towards Ethereum, as evidenced by its higher relative inflows, indicates a growing confidence in the potential of this digital asset. The overall trend of positive momentum in the crypto market, with twelve straight weeks of inflows, underscores the growing investor confidence in digital assets.