Net Inflow Of Digital Asset Investment Products Sets New High Since July 2022

Key Points:

• Digital asset investments surged with a $326 million inflow, driven by hopes of U.S. Bitcoin ETF approval.
• Bitcoin took the lion’s share with $296 million in inflows, alongside $15 million in short-selling Bitcoin products.

Digital asset investment products witnessed a substantial net inflow of $326 million last week, marking the most substantial weekly influx since July 2022, according to data from CoinShares’ weekly report.

Digital Asset Investment Products See Record Inflows Amid ETF Hopes

The primary driver behind this surge in optimism appears to be growing expectations that the U.S. Securities and Exchange Commission (SEC) is on the brink of approving a spot-based Bitcoin Exchange-Traded Fund (ETF) in the United States.

Month-to-date, these inflows have now reached close to half a billion dollars. However, despite this surge, it’s essential to note that this weekly influx ranks as the 21st largest on record, suggesting that investors are still exercising some restraint. Nevertheless, it’s widely believed that a spot-based ETF is highly probable in the coming months, marking a pivotal moment from a regulatory perspective.

Global Investment Landscape: Strong Interest in Cryptos Beyond Bitcoin

Analyzing the regional aspects of this trend, the United States contributed only 12% of the total inflows, amounting to $38 million, with many investors seemingly awaiting the spot-based ETF’s approval.

The majority of the inflows were observed in Canada, Germany, and Switzerland, where investors poured in $134 million, $82 million, and $50 million, respectively. Notably, Asia also recorded the most significant weekly inflows, totaling $28 million. These developments have pushed the total assets under management in digital asset investment products to $37.8 billion, reaching levels not seen since May 2022.

While Bitcoin dominated the scene, drawing in $296 million, there was also $15 million directed into short-selling Bitcoin investment products.. In contrast, Ethereum recorded a net outflow of $6 million during the same period.

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