Record $13.2 billion YTD inflow into digital assets eclipses 2021 total

Last week, digital asset investment products experienced a $2.9 billion net flow, marking two consecutive weeks of record-breaking inflows, according to CoinShares’ latest weekly report.

This achievement propelled digital asset products to a new annual net flow record of $13.2 billion, exceeding the entire inflow for the 2021 bull run, which stood at $10.6 billion.

Furthermore, the spot Bitcoin exchange-traded funds in the US have significantly impacted the performance of digital asset products. This is evident in the total value of assets under the management of crypto ETPs, which reached an unprecedented milestone of $100 billion before a slight correction to $97 billion.

However, despite the significant inflows, trading volume remained steady at $43 billion.

“Trading volumes totaled $43 billion for the week, the same as the prior week records and comprising a larger 47% of overall global bitcoin volumes,” CoinShares head of research James Butterfill added.

US, Bitcoin dominates global flows.

Bitcoin remained the dominant force, with inflows totaling $2.896 billion, constituting 99.9% of the total $2.916 billion for the week.

A breakdown of the flows among providers showed that Grayscale GBTC ETF continued to experience significant outflows, totaling $1.2 billion, bringing the year-to-date outflow to $11.79 billion. ProShares BITO and Purpose ETF also saw outflows of $20 million and $36 million, respectively.

Conversely, BlackRock’s IBIT ETF saw $2.48 billion in inflow, surpassing its closest competitor, Fidelity FBTC, which attracted $718 million.

Geographically, the United States accounted for nearly all inflows, attracting $2.95 billion, with Australia and Brazil also registering $5 million and $23 million, respectively.

However, countries like Canada, Germany, Switzerland, and Sweden experienced outflows ranging from $9.7 million to $32.6 million.

While Bitcoin thrived, smart contract-enabled blockchain networks faced challenges last week, with Ethereum, Solana, and Polygon witnessing varying outflows. Ethereum outflows reached $13.9 million, while Solana saw $2.7 million in outflows.

Remarkably, Short Bitcoin products saw a positive net flow despite the prevailing bullish sentiment around Bitcoin, attracting $26 million in inflows for the week, bringing the year-to-date flow to $90 million.

Other assets that experienced inflows last week include Polkadot with $3.1 million, Litecoin with $2.3 million, Multi-asset with $3.2 million, Binance with $1.5 million, and Cardano with $1.2 million.

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