Digital asset investment products have seen a significant rise in popularity over the past 14 days or so after about 10 weeks of sharp declines.
Reports indicate an upward trend in digital asset fund flows, as $78 million flowed last week, a double increase from the previous one, which exceeded $25 million.
Europe and Bitcoin won significant inflows
As CoinShares data explicitly indicates, Bitcoin has emerged as the main beneficiary in this period. According to statistics, Bitcoin digital asset funds saw inflows of around $43 million per week.
However, this did not stop some investors from taking advantage of Bitcoin’s recent price strength to add to Bitcoin short positions, which attracted $1.2 million in inflows.
Interestingly, the boom in inflows was not global at all. Regionally, there was a stark split, with Europe accounting for 90% of flows, while the US and Canada combined received just $9 million.
Latest flow for 2 weeks He increases This coincided with another 37% increase in exchange-traded product trading volume, which rose to $1.13 billion, indicating bullish sentiment within the digital asset market.
Before the two-week flush period, there was a 10-week dry period, during which about $450 million flowed out of the markets. There were only two very low recorded weekly flows during these 10 weeks.
Analytical data from Bloomberg and CoinShares indicate that the largest outflow this year was reported around mid-March, in the 10th week, at around $260 million. On the contrary, the largest inflow of the year was about $250 million in late June or early July.
New Ethereum ETFs Fail to Impress as Solana Booms
The six newly launched Ethereum-focused ETFs in the US failed to generate the expected enthusiasm. Despite the huge anticipation, these ETFs only managed to attract less than $10 million in the first week. This is a weak response compared to the launch of similar products linked to Bitcoin, which attracted more than $1 billion in a week.
According to analyst James Butterfield of the Coinshares blog, this lukewarm response indicates “investor appetite for digital assets is weak at the moment, and it is unfair to compare it to the Bitcoin futures ETFs that will be launched in October 2021, where appetite has been much higher for the asset class overall.” “.
While Ethereum saw a decline in reaction, Solana’s popularity increased, recording $24 million in weekly flows. This is the largest since March 2022, Coinshares reports.
With Ethereum’s poor performance, analysts point out that the performance of the Solanas product indicates a potential shift in the cryptocurrency community, with SOL becoming the altcoin of choice.
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