Crypto Inflows Hit Second Highest Level Ever
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Last week, investors funneled an impressive $1.84 billion into digital asset investment products, marking the second-highest weekly crypto inflows on record. This surge underscores the escalating demand and bolstered confidence in the crypto market, which has been riding a bullish wave since the year began.
According to CoinShares, a leading digital asset manager, trading volumes in investment products soared to a record-breaking $30 billion for the week, occasionally accounting for 50% of global Bitcoin daily trading volumes on reputable exchanges.
The total assets under management (AuM) of these products are now nearing an all-time high of $86 billion, which was achieved in early November 2021.
As Always, The US Accounts for the Highest Crypto Inflows
The United States emerged as the primary catalyst for crypto inflows, boasting net inflows of $1.88 billion. This was slightly dampened by outflows from Grayscale, the largest digital asset manager, which witnessed $1.46 billion exiting its Bitcoin ETF.
Nonetheless, new issuers in the US market attracted $3.2 billion in inflows last week, signaling a significant shift in investor preferences and market competition dynamics.
In contrast, other regions witnessed a mixed bag of results. Switzerland experienced $20 million in inflows, while Sweden, Germany, and Canada saw outflows of $32 million, $35 million, and $23 million, respectively.
Bitcoin Records $1.72 Billion in Crypto Inflows this Week
Bitcoin remained the preferred asset, capturing 94% of the inflows, totaling $1.72 billion. This steadfast support suggests that investors maintain a bullish outlook on the leading cryptocurrency, notwithstanding recent price fluctuations.
Additionally, some investors increased their stakes in short-bitcoin products, with $22 million flowing into these offerings.
Ethereum, the second-largest cryptocurrency, witnessed its largest weekly inflows since mid-July 2022, attracting $85 million. However, its AuM of $14.6 billion still falls short of its peak of $23.7 billion.
In the altcoin realm, performance varied. Polygon saw $7.6 million in inflows, accounting for 22% of its AuM, while Solana received $12 million in inflows.
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