Bitcoin and Digital Asset Investment Products Saw Massive Inflows Last Week!

• Digital asset investment products saw $78 million in inflows last week, with weekly trading volumes increasing by 37% to reach $1.13 billion.
• Regionally, the divide continues, with 90% of inflows coming from Europe, while the US and Canada only saw a total of $9 million in inflows.
• Last week marked an important test of investor appetite for Ethereum in the US, with the launch of six futures-based ETFs. The new ETFs attracted nearly $10 million in the first week, indicating lukewarm interest.

Digital asset investment products have seen massive inflows in the past week; 90% of inflows come from Europe!

Digital Asset Fund Flows Weekly Report

Digital asset investment products saw $78 million in inflows last week, with weekly trading volumes increasing by 37% to reach $1.13 billion. The launch of Ethereum futures ETFs in the US attracted nearly $10 million in the first week, indicating subdued interest.

Solana saw its largest inflow of $24 million since March 2022 and continues to establish itself as a preferred altcoin. Bitcoin trading volumes on reliable exchanges also saw a 16% increase.

Regionally, the divide continues, with 90% of inflows coming from Europe, while the US and Canada only saw a total of $9 million in inflows, indicating differing investor sentiment.

Bitcoin was the biggest beneficiary and saw $43 million in inflows last week. However, some investors viewed the recent price movement as an opportunity to add to short Bitcoin positions, resulting in $1.2 million in outflows during the same period.

Last week marked an important test of investor appetite for Ethereum in the US, with the launch of six futures-based ETFs. The new ETFs attracted nearly $10 million in the first week, indicating lukewarm interest, especially when compared to the $1 billion raised by Bitcoin futures ETFs in their first week. Currently, the lower interest in the asset class likely stems from lower investor appetite for digital assets compared to the period when Bitcoin futures ETFs were launched in 2021.

Solana saw its largest inflow of $24 million since March 2022. Especially considering recent Ethereum product launches, Solana seems to be maintaining itself as a preferred altcoin.

Current State of the Cryptocurrency Market

While BTC price movements have been relatively dull over the past 48 hours, the asset’s market dominance has increased to 50%—the highest since June. This came at a time when most alternative coins were trading in the red, with AVAX being the worst-performing leader (-3%).

The beginning of last week was much more exciting for BTC, as it surged by over $1,000 to reach its highest level in six weeks on Monday. However, it quickly lost momentum and retraced to around $27,000 levels.

The next few days were less volatile, but cryptocurrencies began to rise again on Thursday. However, bears halted the movement and pushed the asset southward. On Friday, Bitcoin fell to $27,200 after failing to conquer the $28,000 mark.

Another uptick came on Saturday morning, with BTC spiking to $28,300. However, it couldn’t continue upward and pulled back to around $28,000, where it spent the rest of the weekend.

The past 24 hours haven’t brought much volatility, and BTC is currently just below $27,600. Market capitalization remains below $545 billion, but dominance has increased to 50% for the first time since the beginning of summer. Rising BTC dominance indicates that most altcoins have not performed well recently. While there isn’t a significant loser, there is still a prevailing bearish sentiment, with nearly all charts showing a red hue.