Digital asset investment products have experienced a remarkable surge in inflows, reaching a total of $2 billion in a strong five-week streak that has now accumulated to $4.3 billion. Coinshares reports that this increase is in line with rising trading volumes and changing expectations regarding monetary policy.
Last week proved to be a record-breaking period for digital assets, following the approval of a U.S. Ethereum ETF that sparked a $2 billion surge in investments. Exchange-traded products (ETPs) saw trading volumes soar to $12.8 billion, a 55% increase from the previous week, according to analyst James Butterfill from Coinshares. This growth can be attributed to disappointing macroeconomic data in the U.S., leading investors to anticipate earlier rate cuts than previously expected.
In a significant development, bitcoin (BTC) led the way with inflows of $1.97 billion, while ethereum (ETH) saw its highest weekly inflows since March, totaling $69 million. This surge was driven by the unexpected decision of the Securities and Exchange Commission (SEC) to approve spot-based exchange-traded funds (ETFs), signaling a notable shift in regulatory attitude towards ether.
The U.S. was the dominant region in terms of inflows into digital asset investment products, adding $1.98 billion. Coinshares’ report also highlights that Blackrock’s Ishares spot bitcoin ETF has surpassed the Grayscale Bitcoin Trust (GBTC), with assets under management (AUM) reaching $21 billion. Despite the overall positive trend, products shorting bitcoin experienced outflows for the third consecutive week, totaling $5.3 million, as per Butterfill’s analysis.
What are your thoughts on the digital asset inflows reported by Coinshares? Feel free to share your opinions and insights on this topic in the comments section below.
