There Is A Great Inflow To Digital Asset Investment Products

On January 30th, the European cryptocurrency investment firm CoinShares released a report entitled “Digital Asset Fund Flows Report,” laying out that digital asset investments had an inflow of $117 million last week. This is the highest since July 2022, proving that investors have more faith than ever in these futuristic technologies. Time to jump on the crypto bandwagon?

Cryptocurrency And Digital Asset Markets Seems To Be Recovering

According to CoinShares, the cryptocurrency sector’s total assets under management skyrocketed 43% since its November 2022 lows, totaling $28 billion. Excitingly, product volumes surged 17%, with over $1.3 billion traded during the week compared to the year-to-date average! Moreover, weekly digital asset market trading jumped 11%, signifying severe growth in this space.

Last week, Germany saw the highest inflow at a staggering $46 million, comprising 40% of all activity. Other significant contributors included Canada ($30 million), America ($26 million), and Switzerland, with an impressive $23 million investment. Notably, Bitcoin proved to be the most popular option among investors, with over $116M invested; however, there were also smaller investments into related short-Bitcoin products worth approximately $4.4M – indicating that opinions on this matter are pretty divided.

Cryptocurrency And Digital Asset Markets Seems To Be Recovering

Investors Are Turning To Single Assets Rather Than Multi-Asset Investments

The report divulged that multi-asset investment products have been experiencing outflows for the past nine weeks to $6.4 million. CoinShares’ head of research James Butterfill stated this signals investors are taking their funds and controlling them more selectively; Altcoins such as Solana, Cardano, and Polygon saw an inflow in the capital while Bitcoin Cash, Stellar, and Uniswap had a negligible outflow.

Last week, investors flocked to blockchain equities, pumping in a whopping $2.4 million! But hold on, only some people’s on board. The digital asset market saw impressive gains, with investment products hitting new highs and boosted volumes. However, opinions are divided among providers. Savvy investors are getting pickier with their investments as sentiment toward blockchain equities remains split.

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Pieter Aven

Pieter Aven is a business and financial journalist based in Boston covering stories at the intersection of business, technology and finance. He holds a degree in Germanic languages from the University of Brussels and a degree in journalism from Boston University.

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