The past 14 days have seen a surge in the popularity of digital asset investment products after nearly 10 weeks of steep decline.Thank you for reading this post, don't forget to subscribe!
The report signals a rising trend in digital asset fund flows, with $78 million inflows last week, a double jump from the previous week, which saw inflows exceed $25 million.
Europe and Bitcoin Win Big in Flows
As CoinShares data clearly indicates, Bitcoin emerged as the primary beneficiary in this period. According to the data, the Bitcoin Digital Asset Fund saw inflows of about $43 million in the week.
However, that didn’t stop some investors from taking advantage of Bitcoin’s recent price strength to add to short-Bitcoin positions, attracting $1.2 million in inflows.
Interestingly, the surge in inflows was not at all universal. At the regional level, there was a large split, with Europe accounting for 90% of flows, while the US and Canada combined contributed only $9 million.
The latest two-week inflow surge coincided with a 37% increase in trading volume for exchange-traded products, which rose to $1.13 billion, indicating bullish sentiment in the digital asset market.
Before the two-week flow period, there was a 10-week dry period, where approximately $450 million moved out of the market. Very low weekly flows were recorded only twice in these ten weeks.
Analytical data from Bloomberg and CoinShares indicate that the largest outflow this year was reported in mid-March, the 10th week, of about $260 million. In contrast, the largest inflow this year was about $250 million in late June or early July.
New Ethereum ETFs fail to impress as Solana flourishes
Six newly launched Ethereum-focused ETFs in the US failed to generate the expected excitement. Despite high anticipation, these ETFs managed to attract just under $10 million in their first week. This is a weak response compared to the launch of similar products tied to BTC, which attracted over a billion in a week.
According to CoinShares blog analyst James Butterfield, this lukewarm response “suggests poor investor appetite for digital assets at present, and is unfair in comparison to the Bitcoin futures ETF launched in October 2021, as the asset class overall has There was a lot of hunger.”
As Ethereum’s reaction subsided, Solana gained some popularity, recording weekly inflows of $24 million. According to CoinShares report, this is the largest since March 2022.
Coupled with Ethereum’s weak performance, analysts suggest that Solana’s product performance suggests a potential shift in the crypto community, with SOL becoming the preferred altcoin.
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