Outside Source
Investors poured a staggering $346 million into digital asset investment products last week, marking the most significant weekly inflow in over two months.
This surge, fueled by widespread anticipation of a potential spot-based ETF launch in the United States, echoes the fervor reminiscent of the late 2021 bull market.
Ethereum Leads as Altcoin Flock
According to the latest edition of “Digital Asset Fund Flows Weekly Report” penned by CoinShares Head of Research, James Butterfill, the combination of price rises and continuous inflows has propelled total assets under management (AuM) to a whopping $45.3 billion. This marks the highest point in over 18 months.
Notably, the lion’s share of the inflows, accounting for 87%, originated from Canada and Germany. In contrast, the United States witnessed a relatively modest $30 million in inflows, suggesting a cautious stance among investors as they await the eagerly anticipated spot ETF launch.
Among the altcoins, Ethereum experienced a notable turnaround, with $34 million in inflows last week. The report revealed that the altcoin leader contributed to a four-week total of $103 million. This resurgence marks a decisive shift in sentiment, effectively countering the trend of outflows that characterized much of the year.
Other prominent digital assets also attracted investors’ attention. Solana, Polkadot, and Chainlink witnessed inflows totaling $3.5 million, $0.8 million, and $0.6 million, respectively.
Bitcoins Sees Massive Inflow
Bitcoin remained a dominant force, capturing $312 million in inflows last week, pushing year-to-date inflows past the $1.5 billion mark. Despite short-sellers capitulating and experiencing the third consecutive week of outflows totaling $0.9 million, Bitcoin’s assets under management have contracted by 61% since the peak in April 2023.
The report further stated that the volumes of exchange-traded products ETP as a percentage of total spot Bitcoin volumes remain well above average, essentially representing 18% last week. Such a trend is evidenced by “the continued increased use of ETPs to gain exposure to the asset class.”
This article first appeared at CryptoPotato
