Digital Asset Fund Flows Show Bitcoin Leading with Significant Inflows

Digital asset investment products witnessed a third consecutive week of inflows, totaling $1.2 billion, as investors reacted positively to expectations of a dovish monetary policy in the United States. Despite the substantial inflows, trading volumes experienced a slight decline of 3.1% on a week-on-week basis. Assets under management (AuM) increased by 6.2% over the past week, indicating growing interest in digital investments, driven in part by the approval of options for certain US-based investment products.

According to CoinShares, we see that the inflows were largely concentrated in the United States and Switzerland, where digital asset products saw inflows of $1.2 billion and $84 million, respectively. The inflows in Switzerland were the highest since mid-2022. However, contrasting sentiment was observed in other regions, with Germany recording outflows of $21 million, and Brazil seeing $3 million in outflows.

Bitcoin Dominates Inflows as it Gains Traction

Bitcoin led the inflow activity with a massive $1 billion entering investment products. The positive sentiment surrounding Bitcoin also spurred interest in short-bitcoin products, which saw inflows of $8.8 million. This reflects a hedging approach by investors looking to capitalize on both the upside and downside of Bitcoin’s price movements.

Ethereum, which had been experiencing a five-week run of outflows, finally saw a positive shift, recording inflows of $87 million. This marks the first measurable inflows for Ethereum since early August, reflecting renewed investor confidence in the asset.

Among altcoins, sentiment remained mixed. Solana faced outflows amounting to $4.8 million, while Litecoin and XRP saw modest inflows of $2 million and $0.8 million, respectively. On the other hand, Binance and Stacks recorded outflows, with Binance seeing a withdrawal of $1.2 million and Stacks losing $0.9 million.

The week’s inflows highlight a continued positive trend for digital asset investment products, especially Bitcoin and Ethereum, driven by expectations of favorable monetary policy and evolving investment options. However, regional sentiment remained divided, and altcoins experienced mixed reactions, indicating that investors are still discerning in their approach to the broader digital asset market.