Digital Asset Investment Products Sees $2 Billion in Inflows


Global digital asset investment products have experienced net inflows for the fifth consecutive week, adding a substantial $2 billion to the market. According to CoinShares report, this trend highlights a growing confidence among investors in the digital asset space. 

Over the past five weeks, the total inflows have reached an impressive $4.3 billion. This consistent influx of capital has propelled assets under management (AUM) to surpass the $1 billion mark for the first time since March. This milestone reflects a resurgence of interest and a bullish sentiment towards digital assets, as investors seek opportunities in this rapidly evolving sector.

The $2 billion inflows came from asset managers like Ark Invest, BlackRock, Bitwsie, Fidelity, Grayscale, 21Shares, and ProShares. Meanwhile, trading volume for Exchange-traded products increased by 55% to $12.8 billion

Digital Asset Investment Products Continues to Experience Surge

Led by Spot Bitcoin ETF, Digital asset investment products experienced inflows totaling 932 million. Before this, crypto investment products experienced a surge in inflow for the first time in over a month, reaching $130 million with the United States frontrunning the trend.

According to reports, the US received $135 million in crypto inflow, following its substantial $721 million inflow in February. Additionally, Bitcoin continued to lead the way in attracting investments, with $144 million in inflows recovering from a weak month. This surge in capital is attributed to the newly issued ETFs, which attracted a remarkable $41.7 billion in inflows.

US Spot Bitcoin ETF See Three Days Inflows

Recall that in April, the rising popularity of Spot Bitcoin ETFs became evident as spot BTC Exchange-Traded Funds (ETFs) marked their third consecutive day of net inflows, totaling an impressive $31.64 million.

According to the data, BlackRock’s spot Bitcoin ETF brought in $37.92 million, the largest daily net inflows amongst others. Ark Invest brought in $33.28 million, while Bitwise had $23.23 million in net inflows. This significant influx of funds brought the total net inflow to $12.42 billion, with a total net assets of $55.82 billion. 

Furthermore, the consecutive days of net inflows highlight a sustained trend rather than a fleeting interest in Bitcoin ETFs. This report comes months after the US spot BTC ETF industry recorded six straight days of net positive inflows totaling nearly $715 million.

SEC Greenlight Spot Ether ETFs

Last month, the US Securities and Exchange Commission (SEC) approved the listing and trading of spot Ether ETFs, marking the second endorsement of cryptocurrency ETFs this year. The SEC has approved the 19-b4 fillings from eight major asset managers, including Fidelity Investment, BlackRock, VanEck, Franklin Templeton, Grayscale, Invesco Galaxy, ARK 21Shares, and Bitwise.

However, the actual trading of these ETFs will commence once the applicants receive SEC approval for their S-1 registration statements. If the S-1 forms are signed off as expected, Bloomberg ETF analyst James Seyffart predicts that spot Ether ETFs will attract 20% of the inflows seen by spot Bitcoin ETFs. another analyst Eric Balchunas estimated a slightly lower range of 10-15%.

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