Digital asset investment products saw a significant surge, with global net inflows totaling $1.2 billion last week, marking the third consecutive week of positive momentum, according to CoinShares. The inflows were driven by favorable market conditions and increasing optimism around U.S. monetary policy.
Major Players Reap Benefits Amid Positive Price Trends
Asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares contributed to the rising tide of crypto funds. The $1.2 billion in net inflows represents the highest in ten weeks, according to CoinShares Head of Research, James Butterfill. Butterfill noted that continued expectations of a dovish U.S. monetary policy fueled the rally, pushing total assets under management (AUM) up by 6.2% over the past week.
BlackRock’s Spot Bitcoin ETF Drives Sentiment
Investor sentiment received a further boost with the Securities and Exchange Commission’s approval for listing and trading options related to BlackRock’s spot Bitcoin exchange-traded fund. However, despite the positive sentiment, trading volumes fell slightly by 3.1% week-over-week. Bitcoin-based products accounted for $1.1 billion of the total net inflows, continuing their strong performance in the crypto investment space.
U.S. Leads the Inflows, Brazil and Germany See Outflows
U.S.-based crypto funds dominated the inflows, generating $1.2 billion last week, with spot Bitcoin ETFs leading the way. Switzerland followed with $84 million in net inflows into crypto investment products. In contrast, Germany and Brazil experienced net outflows of $21 million and $3 million, respectively.
Bitcoin Leads the Pack, Short Bitcoin Products Also See Growth
Bitcoin-based investment products captured the majority of the net inflows last week, adding $1.1 billion globally. Interestingly, short Bitcoin investment products also saw modest growth, with net inflows of $8.8 million, as Bitcoin’s price increased by 3.5% during the week.
Ethereum Breaks Five-Week Outflow Streak
Ethereum-based investment products had a breakthrough, ending their five-week negative trend. These products added $87 million globally, with U.S. spot Ethereum ETFs accounting for $85 million of that figure. This marks Ethereum’s largest weekly inflow since early August, showcasing renewed investor confidence in the asset.
Solana Sees End to Positive Streak
Conversely, Solana-based investment products saw a reversal of their five-week positive run, with $4.8 million exiting funds globally last week.
