Digital Asset Investment Products See Third Consecutive Week of Inflows as Bitcoin Dominates

Digital asset investment products witnessed a third consecutive week of inflows, totaling $1.2 billion, as investors reacted positively to expectations of a dovish monetary policy in the United States.

Digital asset investment products saw inflows for the third week in a row, with a total of $1.2 billion, as investors reacted to expectations of a dovish monetary policy in the United States.

Despite the large inflows, trading volumes fell slightly by 3.1% week-over-week. Assets under management (AuM) increased by 6.2% over the past week.

The inflows were concentrated in the United States and Switzerland, with digital asset products seeing inflows of $1.2 billion and $84 million, respectively, according to CoinShares. The inflows in Switzerland were the highest since mid-2022.

However, contrasting sentiment was observed in other regions, with Germany recording outflows of $21 million, and Brazil seeing $3 million in outflows.

Bitcoin Dominates Inflows as it Gains Traction

Bitcoin led the inflows with a massive $1 billion entering investment products. The positive sentiment surrounding Bitcoin also drove interest in short-bitcoin products, which saw inflows of $8.8 million. This reflects a hedging approach by investors looking to capitalize on both the upside and downside of Bitcoin’s price movements.

Ethereum, which had been experiencing a five-week run of outflows, finally saw a positive shift, recording inflows of $87 million. This marks the first measurable inflows for Ethereum since early August, reflecting renewed investor confidence in the asset.

Among altcoins, sentiment remained mixed. Solana faced outflows amounting to $4.8 million, while Litecoin and XRP saw modest inflows of $2 million and $0.8 million, respectively. On the other hand, Binance and Stacks recorded outflows, with Binance seeing a withdrawal of $1.2 million and Stacks losing $0.9 million.

The week’s inflows highlight a continued positive trend for digital asset investment products, especially Bitcoin and Ethereum, driven by expectations of favorable monetary policy and evolving investment options. However, regional sentiment remained divided, and altcoins experienced mixed reactions, indicating that investors are still discerning in their approach to the broader digital asset market.