Digital Asset Products See $862M in Inflows, Nearly Erasing Previous Week’s Outflows
Digital asset investment products experienced a positive turnaround in sentiment as inflows reached a total of $862 million last week, almost fully recovering from the record outflows of $931 million in the prior week.
According to a recent report by CoinShares , Bitcoin (BTC) products attracted almost all of the inflows, drawing around $865 million.
The report said that the increase can be attributed to renewed interest from new ETF issuers in the United States, who contributed $1.8 billion in inflows.
However, Grayscale, a prominent digital asset management firm, experienced outflows of $967 million during the same period.
Short-Bitcoin products, on the other hand, faced outflows for the second consecutive week, totaling $2 million.
Digital asset investment products back in inflow territory last week at plus $862m. pic.twitter.com/VDXjvSCwSA
— LondonCryptoClub (@LDNCryptoClub) April 1, 2024
However, it’s worth noting that the activity in exchange-traded funds (ETFs) has started to slow down, with daily trading turnover now at $5.4 billion, a decline of 36% compared to its peak three weeks ago.
Despite this decrease, the current turnover remains significantly higher than the 2023 average of $347 million, suggesting that the initial market hype is gradually cooling off.
On a regional level, the divergence in investor sentiment continues.
The United States witnessed an additional $897 million in inflows, while Europe and Canada combined experienced outflows of $49 million, bringing the year-to-date outflows for these regions to $785 million.
Meanwhile, Ethereum, the second-largest cryptocurrency, witnessed outflows of $19 million for the fourth consecutive week.
This trend is often observed after network
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