Investment in digital asset products surged last week despite market volatility, with inflows totaling $1.44 billion.
The tally pushed year-to-date inflows to a staggering $17.8 billion, far exceeding the $10.6 billion recorded in all of 2021, according to a Monday report from CoinShares.
The report noted that despite the robust inflow, weekly trading volumes remained subdued at $8.9 billion, contrasting with the year’s average of $21 billion.
The US Leads in Terms of Inflows
The United States led the charge with $1.3 billion in inflows, underscoring bullish sentiment that extended globally.
Other notable contributions came from Switzerland, which saw record inflows this year, along with Hong Kong and Canada, recording $58 million and $55 million, respectively.
According to CoinShares, digital asset investment products saw $1.44 billion in inflows last week, bringing year-to-date inflows to a record $17.8 billion. Bitcoin saw its fifth-largest weekly inflow on record, at $1.35 billion. Ethereum saw $72 million in inflows.…
— Wu Blockchain (@WuBlockchain) July 15, 2024
It is worth noting that Bitcoin attracted the fifth-largest weekly inflows on record, totaling $1.35 billion.
Conversely, short-Bitcoin products experienced the largest weekly outflow since April, amounting to $8.6 million.
CoinShares analysts attributed the activity to recent developments, including Germany’s government Bitcoin sales and a shift in investor sentiment following lower-than-expected US CPI data.
Altcoins also witnessed significant inflows, with Ethereum leading the pack with $72 million, marking its largest weekly inflow since March.
This surge is largely attributed to anticipation surrounding the imminent approval of a spot-based ETF in the US.
Additionally, Solana, Avalanche, and Chainlink saw inflows of $4.4 million, $2 million, and $1.3 million, respectively.
Investors Buy the Dip
Investors are capitalizing on the recent dip in Bitcoin prices by pouring money into Bitcoin exchange-traded funds (ETFs).
Over the past six trading sessions, US Bitcoin ETFs experienced a net inflow of around $1.1 billion, according to data from SoSoValue.
The surge in investments comes at a time when the original cryptocurrency has faced a decline of around 20% since early June.
Historically, July has been a bullish month for the crypto market, with a median return of 9%. Many traders anticipate this trend to continue.
Notably, the price of Bitcoin recovered above $62,000 over the weekend amid a broader crypto market rally.
The leading cryptocurrency began its rally soon after the assassination attempt of the former US President and the current Republican presidential candidate Donald Trump.
The broader market rally saw a significant jump in the prices of ETH, SOL, BNB, and TON.
The recent rally has come after a harsh sell-off in recent weeks in the crypto market.
Bitcoin price fell as much as $53,000 earlier this month on the heels of Mt Gox redistribution of Bitcoins and the German government selling millions in the seized crypto.
However, in negative news for Bitcoin, a cryptocurrency wallet associated with Genesis Trading has transferred approximately $720 million worth of Bitcoin to the Coinbase exchange over the past month, pointing to potential liquidations.
As reported, the wallet has moved more than 12,600 Bitcoin, equivalent to approximately $719.9 million, in the last 30 days.
The post Digital Asset Products See $1.44 Billion in Inflows, Setting New Year-to-Date Record appeared first on Cryptonews.
