This article is also available in Spanish.
The latest weekly digital asset fund flow report from CoinShares revealed that last week, crypto asset investment products saw nearly $2.2 billion in inflows worldwide, marking the largest inflow since July.
This increase in income comes amid a gradual recovery in top crypto assets over the past week, most of which are now reclaiming higher prices and registering nearly double-digit gains over the past 7 days.
Related Reading
Who’s Leading the Charge?
Bitcoin-based products were the dominant gainers of last week’s revenue. US spot Bitcoin exchange-traded funds (ETFs) added $2.1 billion, while BlackRock’s IBIT ETF alone generated more than $1.1 billion.
The cumulative revenue of these Bitcoin ETFs, which began trading in January, now stands at $21 billion. These funds have grown to manage a record $66 billion in assets under management, highlighting their significant role in the market.
Notably, the renewed confidence in Bitcoin products reflects this year’s positive sentiment. Last week’s inflows were the biggest since March, when US Bitcoin ETFs saw $2.6 billion as Bitcoin hit an all-time high above $73,000.
This strong demand suggests that investors remain bearish on Bitcoin’s long-term prospects, despite recent market volatility. While Bitcoin stole the limelight, other cryptocurrencies also experienced inflows last week although much less than that of BTC.
Ethereum-based products attracted $58 million in net inflows, while funds based on Solana, Litecoin, and XRP saw minimal inflows of $2.4 million, $1.7 million, and $700,000, respectively.
However, commodity investment products fared less well, experiencing net outflows of $5.3 million, ending a 17-week streak of consecutive inflows.
What Has Caused The Rise Of Crypto Inflows?
According to CoinShares, this increase in income is related to the positive growth of optimism about the upcoming US elections, and the possible victory of the Republic that motivates investors.
Many believe that the Republican administration could favor the digital asset market in a more favorable manner, leading to increased investor confidence and positive price momentum. James Butterfill, Head of Research at CoinShares, commented in particular:
We believe that this renewed optimism stems from the growing expectation of a Republican victory in the upcoming US elections, as they are generally considered to be more supportive of digital assets.
Notably, Butterfill, echoed these sentiments, adding that the trading volume of these investment products increased by 30% last week. Total assets under management (AUM) of crypto funds are now approaching $100 billion globally, highlighting the growing interest in digital assets.
Related Reading
However, while US-based funds prospered, investment products in other countries such as Canada, Sweden, and Switzerland experienced net outflows, reflecting a highly fragmented global market.
The featured image was created with DALL-E, a Chart from TradingView
Source link