Digital Asset Investment Products Register $1.04 Billion Weekly Flows, BTC Leads With $790M, ETH Records $226M

Digital asset investment products experienced massive capital inflows of $1.04 billion over the past week, according to the new data reported today by market analyst CoinShare.

As per the data, this influx marks this week as the 12th consecutive week in which digital asset products are recording remarkable capital inflows, highlighting strong and continued institutional and individual investor bullishness in the virtual currency market.

Ether Demand Rise, Showing DeFi Bullishness 

As reported by the data, Bitcoin is the digital asset that pulled in the largest inflows over the week. The flagship cryptocurrency registered funds worth $790 million moved into its network over the past seven days.

This significant inflow showcases Bitcoin’s status as the biggest virtual currency and the most favoured option for users investing in the digital asset landscape. This is possibly being catalyzed by BTC’s profitability capability and traditional institutions increasingly investing in Bitcoin ETFs.

Ethereum is the second most preferred choice for users capitalizing on the digital asset world, as revealed by the data. The asset attracted $226 million inflows over the past seven days. However, in an interesting observation pointed out by the data, Ethereum’s average weekly inflows over the past 11 weeks valued 1.6% of AUM compared to Bitcoin’s 0.8%.  

This shows that Ethereum is experiencing higher demand than Bitcoin. Contributors to Ether’s advanced demand could be: rising investor interest in products operating in its ecosystem, including decentralized investment activities, digital collectibles, staking, and other digital asset offerings.

What Drives Digital Assets Investment?

In general, the data highlights a growing trend in which users increasingly adopt digital assets as a legit investment category. The continued inflows, especially money pumped in by institutions (as indicated by the expansion of Bitcoin ETFs) indicate that the digital asset market continues to mature. Growing liquidity in the market and its advancing integration with the TradFi are key indicators of its maturity.

Lastly, the data shows that Bitcoin remains the foundation for the digital asset market.  Ethereum’s greater capital influx highlights attractive offerings associated with products in its ecosystem, suggesting investors’ diversification within the digital asset landscape.