Investment in digital asset products is on the rise, with inflows reaching $1.35 billion last week and totaling $3.2 billion over the past three weeks. This increase in investment is reflected in the trading volumes for Exchange Traded Products (ETPs), which saw a significant 45% increase week-over-week to $12.9 billion. However, this only accounted for 22% of the overall crypto market volumes, indicating a shift in investment trends.
Bitcoin remains a popular choice for investors, with $1.27 billion in inflows reported last week. On the other hand, short-bitcoin ETPs experienced outflows of $1.9 million, bringing total outflows since March to $44 million. This suggests that investors are becoming less bearish on bitcoin’s price trajectory and are moving away from short positions on the cryptocurrency.
In terms of altcoins, Ethereum saw a positive outlook last week, with $45 million in inflows. This makes it the altcoin with the highest year-to-date inflows at $103 million, surpassing Solana. Additionally, SOL had inflows of $9.6 million last week but still trails behind ETH in terms of year-to-date inflows. Litecoin also saw inflows of $2.2 million, making it the only other altcoin to receive over $1 million in inflows last week.
Other altcoins like Chainlink, XRP, and Cardano also saw inflows of $0.7 million, $0.5 million, and $0.4 million, respectively. However, blockchain equities continue to struggle, experiencing outflows of $8.5 million last week despite outperforming global equity indices.
In terms of regional investment trends, the US and Switzerland led the way with significant inflows of $1.3 billion and $66 million, respectively. Canada and Australia followed with $7.8 million and $3.8 million in inflows. On the other hand, Germany saw outflows of $5.2 million, while Hong Kong and Brazil experienced minor outflows totaling $1.9 million and $1.7 million, respectively. Sweden also recorded minimal outflows of $0.6 million during the same period.
Overall, the investment landscape for digital assets continues to evolve, with investors showing confidence in assets like Bitcoin and Ethereum while also exploring other altcoins for potential growth opportunities. It will be interesting to see how these trends continue to develop in the coming weeks and months.