Bitcoin BTC/USD and Ethereum ETH/USD investment products continue to signal investor confidence, according to a new report showing sustained inflows.
What Happened: The Coinshares report, authored by James Butterfill, reveals a continued trend of positive sentiment in the crypto investment space.
Last week alone saw inflows of $1.35 billion into digital asset investment products, contributing to an impressive three-week run that has accumulated $3.2 billion in total inflows.
This surge in investment coincides with a notable increase in exchange-traded product trading volumes, which rose by 45% week-on-week to reach $12.9 billion.
However, this figure represents a lower-than-usual 22% of the broader crypto market volumes, indicating potential for further growth.
Bitcoin remains the dominant force in these inflows, attracting $1.27 billion last week.
Interestingly, short-Bitcoin ETPs saw outflows of $1.9 million, extending a trend that has resulted in $44 million in outflows since March.
This represents a significant 56% of assets under management (AuM) for these products, highlighting the enduring positive sentiment surrounding Bitcoin since the April halving event.
Ethereum has also shown signs of a resurgence, with inflows of $45 million last week.
This performance has propelled Ethereum to overtake Solana SOL/USD as the altcoin with the most inflows year-to-date, accumulating $103 million.
Solana, while still attracting investor interest with $9.6 million in inflows last week, now trails Ethereum with $71 million in year-to-date inflows.
Other altcoins also saw positive movement, with Litecoin LTC/USD standing out by attracting over $1 million in inflows, specifically $2.2 million for the week.
Also Read: Trump Campaign Eyes Crypto Voters: What VP JD Vance’s Nomination Means For Bitcoin
Why It Matters: The regional distribution of these inflows presents a mixed picture.
The United States and Switzerland led the charge with significant inflows of $1.3 billion and $66 million respectively.
In contrast, Brazil and Hong Kong experienced minor outflows totaling $5.2 million and $1.9 million respectively.
It’s worth noting that while digital tokens are seeing increased investment, blockchain equities are facing challenges.
Despite most ETFs outperforming world equity indices, blockchain equities experienced outflows of $8.5 million last week, indicating a potential divergence in investor sentiment between tokens and related equities.
This surge in digital asset investments comes at a crucial time for the cryptocurrency market, as it continues to mature and attract institutional interest.
The upcoming Benzinga Future of Digital Assets event on Nov. 19 is poised to delve deeper into these trends, offering insights into the factors driving this investment surge and its implications for the future of digital assets.
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