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Digital Asset Investment Products Draw $646M, Elevating Year-to-Date Inflows to Historic $13.8B
Investor enthusiasm for digital asset investment products remains robust, as demonstrated by the recent influx of capital into various digital asset investment vehicles.
A report from CoinShares indicates that $646 million was invested in these products, bringing the year-to-date inflows to a remarkable $13.8 billion, exceeding last year’s total of $10.6 billion.
Bitcoin remains the central focus for investors, with inflows reaching $663 million.
Conversely, short-bitcoin investment products experienced outflows for the third week in a row, totaling $9.5 million, suggesting a slight capitulation among bearish investors.
Enthusiasm in Spot ETF Begins to Diminish
Despite the generally positive trend, there are signs that the excitement among exchange-traded fund (ETF) investors is beginning to wane, according to the report.
Weekly flow levels have not matched the peaks observed in early March, with volumes for the past week dropping to $17.4 billion, compared to the $43 billion noted in the first week of March.
According to CoinShares, last week saw an inflow of $646 million into digital asset investment products. The total inflow for this year has reached a record high of $13.8 billion. Bitcoin inflows amounted to $663 million, while short Bitcoin investment products experienced outflows…
— Wu Blockchain (@WuBlockchain) April 8, 2024
Regionally, sentiment remains divided.
The United States attracted the largest share of inflows, with an additional $648 million, while Brazil, Hong Kong, and Germany recorded inflows of $10 million, $9 million, and $9.6 million, respectively.
In contrast, Switzerland and Canada faced outflows of $27 million and $7.3 million, respectively.
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Meanwhile, Ethereum has seen outflows for the fourth consecutive week, totaling $22.5 million.
Most other altcoins continued to draw in inflows, with Litecoin, Solana, and Filecoin attracting $4.4 million, $4 million, and $1.4 million, respectively.
The $646 million inflows followed an additional $862 million invested in digital asset investment products the previous week.
Industry Experts Remain Hopeful
Despite the deceleration in Bitcoin spot ETF flows, industry leaders, including Ripple CEO Brad Garlinghouse, maintain a hopeful outlook.
Garlinghouse anticipates that the total market capitalization of cryptocurrencies will double this year, primarily fueled by spot ETFs and the Bitcoin halving.
He asserts that the entry of genuine institutional capital through ETFs is a crucial element contributing to this optimistic perspective.
“I’m very optimistic. I think the macro trends, the big picture things like the ETFs, they’re driving for the first time real institutional money,” he stated in an interview with CNBC on April 7.
Similarly, Matteo Greco, a research analyst at digital asset firm Fineqia International, predicts Bitcoin will reach $75,000 by the time of the halving event.
“Historically, BTC halving events have marked significant points followed by 9-18 months of uptrend, culminating in cycle peaks,” he noted in a recent communication.
Currently, Bitcoin is trading at 72,308, having risen by more than 4% over the past day.
The leading cryptocurrency is less than 2% away from its all-time high of $73,750 recorded on March 14, according to data from CoinMarketCap.
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