Continued Inflow of Money into Digital Asset Investment Products: Bitcoin Remains the Focus!

• According to data compiled by CoinShares last week, digital asset investment products saw a total of $125 million in inflows in the second week.
• Trading activity is significantly above the average of $1.5 billion since the beginning of the year.
• Bitcoin saw inflows of $123 million in the past two weeks, representing 98% of all digital asset flows.

According to data compiled by CoinShares on digital asset investment products, inflows in the past two weeks reached $334 million, and Bitcoin continued to be the main focus.

Increasing Interest in Digital Asset Investment Products

According to data compiled by digital asset investment company CoinShares last week, digital asset investment products saw a total of $125 million in inflows in the second week, bringing the total inflows in the past two weeks to $334 million, representing approximately 1% of managed total assets (AuM).

The recent price increase saw AuM reach $37 billion during the week, the highest point since early June 2022, matching the average AuM for 2022.

Trading activity remained high at $2.3 billion during the week, significantly above the average of $1.5 billion since the beginning of the year.

Bitcoin continued to be the primary focus for investors, with inflows of $123 million in the past two weeks, representing 98% of all digital asset flows.

Bitcoin investment products have returned to net inflows after being in a net outflow position of $171 million just two weeks ago.

A number of altcoins saw small inflows, with Ethereum leading with a total of $2.7 million in inflows, followed by Cardano, Polygon, and XRP. Multi-asset and Solana saw small outflows of $1.8 million and $800,000, respectively.

Blockchain stocks saw inflows of $6.8 million following a nine-week outflow trend.

Institutional Bitcoin Assets on the Rise

According to CryptoQuant, the increase in institutional Bitcoin assets indicates that major institutions are seeking long-term investment opportunities in the leading digital asset. Their approach to BTC is more patient and different from short-term investors who focus more on price fluctuations.

The increase in institutional fund assets can be attributed to recent spot Bitcoin exchange-traded fund (ETF) applications in the United States. In mid-June, BlackRock, the world’s largest asset management company, filed an application with the Securities and Exchange Commission (SEC) to launch a spot Bitcoin ETF.

BlackRock’s application encouraged traditional financial giants to also apply for new spot Bitcoin ETFs. In addition to BlackRock, investment managers WisdomTree, Invesco, VanEck, Fidelity Digital, Ark Invest, and financial services firm Valkyrie have all applied for Bitcoin spot ETFs.

Despite the SEC labeling the recent Bitcoin spot applications as “inadequate,” this development has increased institutional investors’ confidence in the long-term sustainability of digital assets.