Digital asset investment products have experienced an 11th consecutive week of inflows, totaling $43 million, according to a new report. This marks the longest run of inflows since October 2021, a period that coincides with the launch of the first futures-based Bitcoin ETF in the U.S. Despite these inflows, there has been a notable decline compared to previous weeks, attributed partly to investors’ caution following recent price increases.
Bitcoin and Ethereum: Leading the trend
- Bitcoin: The leading cryptocurrency continues to be the primary focus of investors, attracting $20 million in fresh inflows last week. This investment brings Bitcoin’s year-to-date total to $1.7 billion. However, there’s also a noticeable increase in short positions on Bitcoin, indicating skepticism about the sustainability of its current price levels.
- Ethereum: Ethereum, known for its smart contract capabilities, has marked its 6th consecutive week of inflows, totaling $10 million. This turnaround is significant, considering that just seven weeks ago, Ethereum experienced outflows of $125 million year-to-date. The recent trend has resulted in $19 million of net inflows for the year.
Europe’s predominance in digital asset inflows
Europe has emerged as the leading region for inflows into digital assets, with last week’s inflows amounting to $43 million. This figure starkly contrasts with the United States, which saw more modest inflows of $14 million, half of which went into short positions. Additionally, markets like Hong Kong and Brazil recorded minor outflows of $8 million and $4.6 million, respectively, highlighting Europe’s current dominance in the crypto investment landscape.
Other altcoins such as Solana and Avalanche also remain popular among investors, witnessing inflows of $3 million and $2 million last week. Blockchain-focused stocks have seen record weekly inflows of $126 million, underscoring the growing institutional appetite for crypto and Web3 exposure.
