TL;DR
- Weekly digital asset income: $1.1B; AuM reaches $59B, highest since 2022.
- US Bitcoin ETF: $1.1B in inflows last week; concern about future departures of flows.
- Bitcoin dominance: accounts for 98% of total revenue; Ethereum and Cardano are also showing growing interest.
The digital asset market continues to show vigorous momentum, according to the latest weekly fund flows report from CoinShares Research.
During the week under review, investment products in this space attracted an impressive income stream worth $1.1 billion, bringing the accumulated income so far this year to a considerable sum of $2.7 billion.
This increase in fund flows has taken assets under management (AuM) to its highest level since early 2022, reaching $59 billion.
One factor highlighted in the report is the continued focus on the newly launched Bitcoin ETFs in the United States.
Since their introduction on January 11, these ETFs have seen massive investor attraction, recording a net amount of $1.1 billion over the past week and a total of $2.8 billion to date.
Although exits by incumbents have slowed significantly, there is concern about possible future exits due to the possible sale of Genesis holdings worth $1.6 billion in the coming months.
In regional terms, a cooling trend is observed in fund exits from other regions, with outflows of less than $17 million from Canada and $10 million from Germany.
On the other hand, Switzerland recorded a notable income of $35 million over the past week.
In terms of flows distribution by asset, Bitcoin remains the leader, capturing almost 98% of total revenue
However, there is also positive sentiment towards Ethereum and Cardano, with revenues of $16 million and $6 million respectively, driven by price appreciation.
Additionally, there were smaller inflows into other cryptocurrencies such as Avalanche ($0.5 million), Polygon ($0.4 million), and Tron ($0.4 million).
Finally, while blockchain-related stocks saw outflows from one issuer totaling $67 million, other issuers managed to capture revenue streams totaling $19 million, indicating some diversification in blockchain-technology investments.
The report highlights the robustness of the digital asset market, with continued inflows and significant interest in Bitcoin ETFs in the United States, while Bitcoin remains the dominant investment option, followed by Ethereum and Cardano.
