The year has started with positive momentum for digital asset investment products, revealing an encouraging outlook in the digital financial market.
According to CoinShares latest weekly report on fund flows into digital assets, during the first week of 2024, significant inflows totaling $151 million were recorded.
Bitcoin led the charge with a notable revenue of $113 million, representing continued momentum for this cryptocurrency.
These flows translate to approximately 3.2% of assets under management (AuM) over a 9-week period.
However, bearish bets on Bitcoin saw outflows of $1 million during the same week, defying expectations of a possible rally due to the ETF’s launch in the United States.
On the other hand, Ethereum showed a recovery in market sentiment with revenues of $29 million during the first week of the year.
This marks a notable change, with total revenue over the last 9 weeks reaching $215 million.
Diversification was evident, with other assets such as Cardano, Avalanche and Litecoin attracting considerable flows
However, Solana did not get off to such an auspicious start in 2024, experiencing exits totaling $5.3 million.
The fund flows also highlighted the importance of the US market, even though the spot market-based Bitcoin ETF has not yet launched there.
Surprisingly, 55% of the flows came from US exchanges, while Germany and Switzerland accounted for 21% and 17%, respectively, of the total flows.
In addition to cryptocurrencies, blockchain-related stocks are off to a strong start to the year, posting revenues totaling $24 million for the week.
The monetary shifts and investments observed within the digital asset landscape during the initial phase of 2024 provide insight into a multifaceted and encouraging viewpoint regarding the market’s trajectory.
They show continued interest in Bitcoin and Ethereum, along with diversification into other assets, while also noting the importance of stocks in companies linked to blockchain technology.
The dynamics of fund flows from different regions heralds an interesting period in the global digital financial landscape.