Digital Asset Investment Products Attract $646M, Pushing YTD Inflows to Record $13.8B

Investor interest in digital asset investment products remains strong as evidenced by the recent inflows into various digital asset investment products.

According to a report by CoinShares, a total of $646 million poured into these vehicles, pushing the year-to-date inflows to an unprecedented $13.8 billion and surpassing the previous year’s total of $10.6 billion.

Bitcoin continues to be the primary focus for investors, with inflows totaling $663 million.

However, short-bitcoin investment products saw outflows for the third consecutive week, amounting to $9.5 million, indicating a minor capitulation among bearish investors.

Enthusiasm in Spot ETF Start to Moderate

Despite the overall positive trend, there are indications that the enthusiasm from exchange-traded fund (ETF) investors is starting to moderate, the report said.

Weekly flow levels have not reached the heights seen in early March, and volumes for the past week declined to $17.4 billion, compared to the $43 billion recorded in the first week of March.

According CoinShares, last week saw an inflow of $646 million into digital asset investment products. The total inflow for this year has reached a record high of $13.8 billion. Bitcoin inflows amounted to $663 million, while short Bitcoin investment products experienced outflows…

— Wu Blockchain (@WuBlockchain) April 8, 2024

Regionally, sentiment remains polarized.

The United States attracted the largest share of inflows, with an additional $648 million, while Brazil, Hong Kong, and Germany saw inflows of $10 million, $9 million, and $9.6 million, respectively.

On the other hand, Switzerland and Canada experienced outflows of $27 million and $7.3 million, respectively.

Meanwhile, Ethereum experienced outflows for the fourth consecutive week, totaling $22.5 million.

Most other altcoins continued to attract inflows. Notably, Litecoin, Solana, and Filecoin saw inflows of $4.4 million, $4 million, and $1.4 million, respectively.

The $646 million inflows came after investors poured another $862 million into digital asset investment products the prior week.

Industry Pundits Remain Optimistic

Despite the slowing Bitcoin spot ETF flows, industry executives, such as Ripple CEO Brad Garlinghouse, remain optimistic.

Garlinghouse predicts that the total market value of cryptocurrencies will double this year, largely driven by spot ETFs and the Bitcoin halving.

He believes that the introduction of real institutional money through ETFs is a significant factor contributing to this positive outlook.

“I’m very optimistic. I think the macro trends, the big picture things like the ETFs, they’re driving for the first time real institutional money,” he told CNBC on April 7.

Likewise, Matteo Greco, a research analyst at digital asset firm Fineqia International, expects Bitcoin to reach $75,000 by the halving event.

“Historically, BTC halving events have marked significant points followed by 9-18 months of uptrend, culminating in cycle peaks,” he wrote in a recent note.

As of now, Bitcoin is trading at 72,308, up by more than 4% over the past day.

The leading cryptocurrency is less than 2% away from its all-time high of $73,750 registered on March 14, according to data from CoinMarketCap.

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