Digital asset investment products have reportedly seen the largest single weekly inflows in a year, according to a new report from CoinShares, a European digital asset manager. This news comes after nine consecutive weeks of outflows, and bitcoin-related products were reportedly the primary asset for inflows. These products saw a total inflow of $188 million, representing around 94% of the total flows.
The latest news has come amid a number of high-profile institutions filing for exchange-traded funds (ETFs) in recent weeks, with some TradFi firms even refiling for similar products. Asset management giant BlackRock has also applied to roll out a spot bitcoin ETF, while bitcoin’s (BTC) price hit a one-year high.
The renewed positive sentiment has been attributed, at least partially, to recent announcements from high-profile ETP issuers filing for physically backed ETFs with the US Securities & Exchange Commission. The inflows totaled $199 million, which has reversed almost half the prior nine consecutive weeks of outflows. The report also noted that Exchange Traded Product trading volumes totaled $2.5 billion for the same week.
On the other hand, ethereum saw inflows of $7.8 million, representing only 0.1% of assets under management (AUM), relative to bitcoin’s inflows of 0.7%, which demonstrates less of an appetite for ethereum than for bitcoin at present.
Despite the positive sentiment, however, altcoin investments did not see the same gains. According to the report, “this turn in sentiment didn’t trickle down to altcoins, with only very minor inflows into XRP and Solana totaling $0.24 million and $0.17 million respectively.” Still, the improved sentiment encouraged some investors to buy multi-asset investment ETPs, with $8 million inflows last week.
Overall, these latest findings suggest a renewed appetite for bitcoin-related investment products, with positive sentiment also creeping in for multi-asset investment products more broadly. However, the report notes that the lack of interest in altcoins compared to bitcoin could indicate a more cautious approach to digital asset investments in general. It remains to be seen whether this trend will continue in the coming weeks and months.