The investment in digital asset products has been steadily on the rise, with inflows reaching an impressive $1.35 billion last week. This brings the total inflows over the past three weeks to a staggering $3.2 billion. Furthermore, trading volumes for Exchange Traded Products (ETPs) also saw a significant increase, jumping up by 45% week-over-week to reach $12.9 billion. Despite this growth, it is worth noting that ETP trading volumes only accounted for 22% of the overall crypto market volumes, which is lower than usual.
Bitcoin continues to dominate the digital asset market, with $1.27 billion in inflows reported last week alone. However, it is interesting to note that short-bitcoin ETPs saw additional outflows of $1.9 million during the same period, leading to total outflows of $44 million since March. This trend suggests that investors may be shifting away from bearish bets on bitcoin and are becoming less concerned about its price trajectory. The significant outflows represent a substantial 56% of assets under management (AuM) since March, indicating a shift in investor sentiment following the halving event in April.
The past week has also seen a positive outlook for Ethereum, with $45 million in inflows reported. This makes Ethereum the altcoin with the highest year-to-date (YTD) inflows at $103 million, surpassing Solana. Despite this, Solana still saw inflows of $9.6 million last week but now trails behind Ethereum with $71 million in YTD inflows. Other altcoins such as Litecoin, Chainlink, XRP, and Cardano also experienced inflows ranging from $0.4 million to $2.2 million, showcasing a growing interest in alternative cryptocurrencies.
Regional Investment Trends
In terms of regional investment trends, the United States and Switzerland led the way with significant inflows of $1.3 billion and $66 million, respectively. Canada and Australia followed suit with $7.8 million and $3.8 million in inflows. On the other hand, Germany experienced outflows of $5.2 million, while Hong Kong and Brazil saw minor outflows of $1.9 million and $1.7 million, respectively. Sweden also recorded minimal outflows of $0.6 million during the same period.
Overall, the continuous rise in digital asset investments, changing investor sentiment, and regional investment trends paint a dynamic picture of the evolving digital asset market. Investors are increasingly diversifying their portfolios, showing a growing interest in altcoins, and responding to global economic trends with their investment decisions.
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