Digital Asset Products Continue Inflow Streak, Exceed $20.5B YTD
The digital asset investment landscape continues to draw substantial interest, with inflows maintaining a positive trajectory for fourth consecutive week.
Last week, the sector saw an influx of $245 million, with year-to-date (YTD) inflows reaching a record $20.5 billion, according to a recent report from CoinShares.
Furthermore, trading volumes reached their highest levels since May, hitting $14.8 billion for the week, largely driven by the recent launch of Ethereum ETFs.
Bitcoin products have continued to attract significant investments.
Last week alone, Bitcoin saw inflows amounting to $519 million, bringing its month-to-date inflows to $3.6 billion and YTD inflows to an unprecedented $19 billion.
The surge in investment is believed to be influenced by the political climate in the United States, particularly with comments from the election campaign suggesting Bitcoin could be considered a strategic reserve asset.
Additionally, the anticipation of a potential rate cut by the Federal Reserve in September 2024 has bolstered investor sentiment towards Bitcoin.
The introduction of US spot-based Ethereum ETFs has also generated considerable interest, recording some of the highest inflows since December 2020.
These newly issued ETFs attracted $2.2 billion in inflows, while trading volumes in Ethereum exchange-traded products (ETPs) increased by a staggering 542%.
However, this influx is partially attributed to Grayscale seeding its new Mini Trust ETF with approximately $1 billion from its existing closed-end trust.
The move may explain the consistent outflows from Grayscale’s legacy trust, which saw $1.5 billion in outflows last week, resulting in a net outflow of $285 million.
According to CoinShares, digital asset investment
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