Benzinga – The digital asset investment sector experienced a significant surge last week, with inflows totaling $346 million, marking the largest weekly inflows during a nine-week consecutive run.
This increase was primarily fueled by the anticipation of a spot-based exchange-traded fund (ETF) launch in the U.S., according to Coinshares.
Bitcoin (CRYPTO: BTC), the leading cryptocurrency, recorded inflows of $312 million last week, elevating its year-to-date inflows to just over $1.5 billion.
This substantial influx comes as short-sellers continue to retreat, with the third consecutive week of outflows totaling US$0.9 million.
Despite this, the total assets under management (AuM) for Bitcoin have decreased by 61% since their peak in April 2023.
However, exchange-traded products (ETPs) related to Bitcoin are seeing increased usage, accounting for 18% of total spot Bitcoin volumes last week.
Ethereum (CRYPTO: ETH), another major player in the cryptocurrency market, also witnessed a positive trend with $34 million in inflows last week.
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This four-week run, totaling $103 million, nearly offsets its outflows earlier this year, indicating a significant shift in investor sentiment towards Ethereum.
The overall growth in digital asset investments has pushed the total AuM to US$45.3 billion, the highest in over one and a half years.
Regionally, Canada and Germany accounted for 87% of the total inflows.
In contrast, the U.S. saw relatively lower participation with only $30 million in inflows last week, as investors likely await the ETF launch.
Other cryptocurrencies such as Solana (CRYPTO: SOL), Polkadot (CRYPTO: DOT) and Chainlink (CRYPTO: LINK) also experienced inflows, totaling $3.5 million, $0.8 million and US$0.6 million, respectively, contributing to the overall positive trend in the digital asset investment market.
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Photo: Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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