- Digital asset fund flows hit a record high with weekly inflows reaching $2.9 billion.
- Bitcoin dominates attracting 97% of year-to-date inflows while short positions also increase.
- Global Crypto ETPs surpass $100 billion milestone indicating growing institutional interest.
Coinshares, a leading digital asset investment firm recently shared its research on digital asset fund flows revealing that the investor interest in digital assets is soaring with record weekly inflows of $2.9 billion surpassing the previous week’s all-time high. The investment surge this week has pushed year-to-date inflows to a staggering US$13.2 billion shattering the 2021 record of US$10.6 billion.
Notably, Bitcoin remains the dominant force attracting US$2.86 billion in inflows last week accounting for a staggering 97% of all year-to-date inflows. Interestingly, short Bitcoin positions also saw significant inflows for the fifth consecutive week totaling US$26 million indicating investor hedging strategies.
Global Crypto Exchange Traded Products (ETPs) surpassed the $100 billion mark for the first time during the week marking another milestone. However, a slight price correction saw them settle at US$97 billion by week’s end. This signifies growing institutional interest in gaining exposure to cryptocurrencies through regulated exchange-traded products.
Recently, Figment Europe, a leading provider of institutional staking services and Apex Group, a global financial services provider had teamed up to launch the first-ever exchange-traded products (ETPs) focused on staking rewards for Ethereum (ETH) and Solana (SOL). The Figment Ethereum Plus Staking Rewards (ETHF) and Figment Solana Plus Staking Rewards (SOLF) ETPs debuted on the SIX Swiss Exchange on March 12, 2024.
While the overall sentiment is bullish, smart contract platforms like Ethereum, Solana and Polygon experienced outflows totaling US$14 million, US$2.7 million, and US$6.8 million, respectively. This could be due to profit-taking or a shift in investor focus towards other areas of the cryptocurrency market.
The United States emerged as the leading region for inflows, contributing US$2.95 billion. Minor inflows were also observed in Australia, Brazil and Hong Kong. Conversely, Canada, Germany, Sweden and Switzerland witnessed a combined outflow of US$78 million last week.
A positive sign emerged with blockchain equities attracting US$19 million in inflows marking the first positive week after a six-week period of outflows. This suggests renewed interest in companies involved in blockchain technology.
