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Record-Breaking Inflows for Digital Asset Investment Products
Last week saw a remarkable milestone in the world of digital asset investment products, with a staggering $2.9 billion in net flow, according to the latest weekly report from CoinShares. This achievement marked the second consecutive week of record-breaking inflows, catapulting digital asset products to a new annual net flow record of $13.2 billion. This surpasses the entire inflow for the 2021 bull run, which stood at $10.6 billion.
The performance of digital asset products was significantly influenced by spot Bitcoin exchange-traded funds in the US. This influence is evident in the total value of assets under the management of crypto ETPs, which reached an unprecedented milestone of $100 billion before experiencing a slight correction to $97 billion. Despite the substantial inflows, trading volume remained steady at $43 billion.
“Trading volumes totaled $43 billion for the week, the same as the prior week records and comprising a larger 47% of overall global bitcoin volumes,” highlighted CoinShares head of research James Butterfill.
Bitcoin continued to dominate global flows, with inflows totaling $2.896 billion, constituting 99.9% of the total $2.916 billion for the week. Among providers, Grayscale GBTC ETF faced significant outflows, totaling $1.2 billion, leading to a year-to-date outflow of $11.79 billion. On the other hand, BlackRock’s IBIT ETF saw a substantial inflow of $2.48 billion, outperforming its closest competitor, Fidelity FBTC, which attracted $718 million.
Geographically, the United States led the way in inflows, attracting $2.95 billion, with Australia and Brazil also registering $5 million and $23 million, respectively. However, countries like Canada, Germany, Switzerland, and Sweden experienced outflows ranging from $9.7 million to $32.6 million.
While Bitcoin continued its dominance, smart contract-enabled blockchain networks faced challenges last week, with Ethereum, Solana, and Polygon witnessing varying outflows. Ethereum saw outflows reach $13.9 million, while Solana experienced $2.7 million in outflows.
Interestingly, despite the prevailing bullish sentiment around Bitcoin, Short Bitcoin products saw a positive net flow, attracting $26 million in inflows for the week, bringing the year-to-date flow to $90 million. Other assets that experienced inflows last week included Polkadot with $3.1 million, Litecoin with $2.3 million, Multi-asset with $3.2 million, Binance with $1.5 million, and Cardano with $1.2 million.
Mentioned in this article:
- Grayscale GBTC ETF
- ProShares BITO
- Purpose ETF
- BlackRock’s IBIT ETF
- Fidelity FBTC
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