Digital Asset Investment Products See Record Inflows of $2.45 Billion

According to the latest report from CoinShares Research, digital asset investment products experienced record-breaking inflows of $2.45 billion last week. This surge in inflows has pushed total assets under management (AuM) to $67 billion, the highest level since December 2021.

Bitcoin Dominates Inflows

Bitcoin dominated the inflows, accounting for over 99% of the total. Ethereum also saw significant inflows of $21 million. However, Solana experienced outflows of $1.6 million due to recent downtime.

Beneficiaries Include Avalanche, Chainlink, and Polygon

Other major beneficiaries of the inflows included Avalanche, Chainlink, and Polygon, with each receiving $1 million, $0.9 million, and $0.9 million respectively. These three assets have consistently attracted weekly inflows throughout the year.

Blockchain Equity ETFs Experience Outflows

On the other hand, investors in blockchain equity ETFs took profits, resulting in outflows of $167 million. This may indicate concerns over high valuations in the sector.

Global Activity

The United States accounted for 99% of the total inflows, with Germany and Switzerland also posting modest inflows of $13 million and $1 million respectively. However, Sweden recorded outflows of $26 million.

Optimism for the Future

Industry observers are optimistic about the future of digital asset funds, expecting momentum to continue building as adoption increases and regulatory guidance emerges. Brian Jones, CoinDesk Markets analyst, stated, “There’s still tremendous growth potential given the small share of total global assets invested in crypto so far.”

With institutional demand on the rise, digital asset funds are expected to continue climbing to new highs. However, investors should be prepared for potential pullbacks in this volatile sector.