tl;dr
Digital asset investment products have reached a record year-to-date inflow of $13.8 billion, surpassing the previous year's total. Despite Bitcoin's recovery and the upcoming BTC halving, the enthusiasm for spot Bitcoin ETFs has slowed, with declining weekly flow levels and trading volumes. The Uni...
Year-to-date inflows for digital asset investment products have reached an all-time high of $13.8 billion, surpassing 2021's $10.6 billion.
Despite Bitcoin's recovery and the upcoming BTC halving, spot Bitcoin ETF fervor is slowing down.
Weekly flow levels and trading volumes for digital asset investment products have declined from early March.
The United States saw significant inflows totaling $648 million, while Switzerland and Canada experienced weekly outflows of $27 million and $7.3 million, respectively.
Bitcoin inflows amounted to $663 million last week, with short-bitcoin investment products experiencing outflows for the third consecutive week.
Ethereum witnessed outflows for the fourth consecutive week, in contrast to other altcoins like Litecoin, Solana, and Filecoin, which observed inflows.
Summary: Digital asset investment products have reached a record year-to-date inflow of $13.8 billion, surpassing the previous year's total. Despite Bitcoin's recovery and the upcoming BTC halving, the enthusiasm for spot Bitcoin ETFs has slowed, with declining weekly flow levels and trading volumes. The United States experienced significant inflows, while Switzerland and Canada saw outflows. Bitcoin inflows amounted to $663 million, and short-bitcoin investment products have seen outflows for three consecutive weeks. Additionally, Ethereum witnessed outflows for the fourth consecutive week, contrasting with other altcoins like Litecoin, Solana, and Filecoin, which observed inflows. With the broader market resurgence, digital assets investment products also maintained their upward trend. According to CoinShares’ latest data, inflows reached $646 million last week. As a result, year-to-date inflows have reached an all-time high of $13.8 billion, significantly surpassing the $10.6 billion recorded in 2021.
ETF HYPE SLOWS DOWN: The new feat comes after digital asset investments rebounded strongly at the end of March. With the market gearing up for the much-anticipated BTC halving this month, investor sentiment has improved in tandem with Bitcoin’s recovery above $72,000. However, the fervor surrounding spot Bitcoin ETFs appears to be tapering off. In fact, the latest edition of CoinShares’ Digital Asset Fund Flows revealed that the weekly flow levels haven’t reached the heights seen in early March. Additionally, trading volumes last week declined to $17.4 billion, down from $43 billion in the first week of March. "Despite this, there are signs that appetite from ETF investors is moderating, not achieving the weekly flow levels seen in early March." Besides, the Singaporean asset manager further revealed that investor sentiment remained polarized in terms of region. The United States witnessed additional inflows totaling $648 million over the week. A similar trend was seen across investors in Brazil, Hong Kong, and Germany, which led to inflows of $10 million, $9 million, and $9.6 million, respectively. On the other hand, Switzerland and Canada saw recorded weekly outflows of $27 million and $7.3 million, respectively.
BEARISH INVESTORS CAPITULATE: Bitcoin continued to be the primary focus for investors, with inflows amounting to $663 million over the past week. Meanwhile, short-bitcoin investment products experienced outflows for the third consecutive week, totaling $9.5 million, indicating a “minor capitulation” among bearish investors. Ethereum, too, witnessed outflows for the fourth consecutive week, amounting to $22.5 million. This is in contrast to the majority of other altcoins, which continued to observe inflows over the past week. Noteworthy among these are Litecoin, Solana, and Filecoin, which witnessed inflows of $4.4 million, $4 million, and $1.4 million, respectively. During the same period, investment products related to Polkadot, Cardano, and XRP also noted minor inflows of $0.6 million, $0.2 million, and $0.1 million, respectively.
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