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Digital Asset Fund Flows Reach Significant Levels

Digital Asset Fund Flows Reach Significant Levels

Investment products related to Digital Assets have had a remarkable week, with capital inflows not seen since July, totaling $78 million, according to reports provided by CoinShares. This is the second consecutive week in which investors have been pouring capital into these products.

The bullish trend is not limited to digital assets alone, as trading volumes for Exchange-Traded Products (ETP) also experienced a 37% increase, reaching $1.13 billion during the week. Investors have been active in the crypto market, and confidence seems to be returning after a period of volatility.

However, not all cryptocurrencies have enjoyed the same enthusiasm. The recently launched Ethereum Futures ETF in the United States attracted only around $10 million in its first week, leading some to talk of a “lukewarm appetite.”

In comparison, Bitcoin futures-based ETFs attracted an astonishing $1 billion in their first week. This disparity could be due to a lack of general interest in digital assets at that time and should not be compared to the Bitcoin futures ETF launches in October 2021, when the demand for this asset class was much higher, and overall market conditions were more optimistic.

Digital Assets Record in inflows with a regional division in capital inflows

On the other hand, Solana, positioned as the eighth-largest cryptocurrency in terms of market capitalization, continues to solidify its position as the “altcoin of choice.”

Last week, it recorded capital inflows totaling $24 million, marking its most successful week since March 2022. Despite the recent 14% increase in the past month, Solana still remains 32% below its value from last year, according to CoinGecko data.

A Regional Division in Capital Inflows

Interestingly, 90% of the investments are coming from the European continent, while the United States and Canada represent only a modest total of $9 million in combined inflows. Germany and Switzerland lead the charge in Europe, contributing $37.3 million and $31.3 million in inflows, respectively, accounting for 88% of all investments in digital asset products during the past week.

This surge in crypto investment coincides with CoinShares’ efforts to expand its operations in the United States. The company introduced its first products in the country in September 2023 and exhibits confidence in the United States’ leading position in the development of such digital assets.

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