In a remarkable display of sustained growth, the digital asset market has seen a cumulative inflow of $1.76 billion over the past 10 weeks, according to the latest report from CoinShares.
This continuous inflow, with Ethereum leading the charge, marks the longest streak of growth since the launch of futures-based ETFs in the US in October 2021.
Positive Trend Emerges as Ethereum Attracts $134 Million in Inflows
Despite a notable 107% increase in total assets under management (AuM) this year, reaching $46.2 billion, the cryptocurrency market still trails behind its peak of $86.6 billion in 2021.
The latest CoinShares report highlights that trading volumes for exchange-traded products (ETPs) remained robust at $2.6 billion over the past week, accounting for 12% of the total Bitcoin volumes.
In this landscape, Bitcoin has been recognized as the primary beneficiary. However, Ethereum, the world’s largest altcoin, has also seen a significant surge in investor interest. This week alone, Ethereum reported inflows of an impressive $134 million.
This marks the fifth consecutive week of positive inflows for Ethereum, totaling $134 million and signifying a substantial shift in market sentiment. For the first time this year, Ethereum’s net flows have turned positive at $10 million, indicating a notable reversal from a prolonged period of negative sentiment.
In contrast to Ethereum’s rising trend, Bitcoin continued to dominate the digital asset products market, recording significant inflows totaling $133 million. Additionally, the short-bitcoin investment products, which had experienced outflows for three consecutive weeks, saw a change in trend with inflows of $3.6 million last week.
Other notable altcoins also demonstrated positive movement. Solana, XRP, and Cardano each saw inflows of $4.3 million, $0.5 million, and $0.1 million, respectively, during the same period.
Interestingly, Litecoin emerged as an exception in the current market scenario, standing out as an outlier despite the overall increase in institutional demand for crypto assets.
Geographical Distribution of Digital Asset Inflows and Outflows
The global landscape of digital asset inflows shows a concentrated focus on specific regions, particularly Canada, Germany, and the United States, with inflows of $79 million, $57 million, and $54 million, respectively. These regions have been pivotal in driving the recent surge in digital asset investments.
Conversely, the digital asset manager’s report highlighted a contrasting trend in Hong Kong, where minor outflows amounting to $15 million were observed.
Despite the overall assets under management (AuM) in the Asian region being relatively small and the limited number of exchange-traded products (ETPs), this region stands out for experiencing net outflows year-to-date.
Furthermore, equities related to blockchain technology have been experiencing a consistent inflow for seven consecutive weeks. The most recent inflow, amounting to $17.4 million last week, marks the highest level since July 2022, indicating a growing investor interest in blockchain-related equities amidst the broader digital asset market trends.