Crypto Funds See Surge in Inflows: Bitcoin, Ethereum, and XRP Lead, Solana Witnesses Outflow
Date: 2024-03-04 Author: Dima Zakharov Categories: BLOCKCHAIN
Massive Influx in Cryptocurrency Investment Products
According to the CoinShares weekly report released on March 4, the influx of funds into cryptocurrency-based investment products continues unabated, with an additional $1.8 billion pouring in over the past week, primarily driven by American ETFs.
Record-breaking Inflows and Trading Volumes
Investment products related to digital assets witnessed the second-largest weekly inflow in history, reaching $1.84 billion. Trading volumes for these products hit a record high of $30 billion for the week, occasionally accounting for 50% of global daily Bitcoin trading volumes on trusted exchanges.
US Dominance and Emerging Trends
The United States maintained its dominance, experiencing a net capital inflow of $1.88 billion. However, this was partially offset by an outflow from the existing Grayscale Bitcoin ETF, amounting to $1.46 billion. Despite this, new issuers emerged, contributing to a total weekly inflow of $3.2 billion.
Regional Variances in Flows
While Switzerland saw an inflow of $20 million, outflows were observed in Sweden, Germany, and Canada, amounting to $32 million, $35 million, and $23 million, respectively.
Bitcoin Dominance and Ethereum Surge
Bitcoin accounted for 94% of the inflows, totaling $1.72 billion. Ethereum saw its largest weekly inflow since mid-July 2022, reaching $85 million, although its assets under management (AuM) remain below its peak.
Solana's Outflow and Polygon's Inflow
Solana witnessed an outflow of $12 million, while Polygon saw an inflow of $7.6 million, representing 22% of its AuM.
