March 19, 2024

Surge in Digital Asset Fund Investments: YTD Inflows Hit Record-Breaking $13.2 Billion, Outpacing Entire 2021

A new high of $2.9 billion in weekly inflows marked another milestone for digital assets.

The realm of digital assets continues to witness an unprecedented surge in traditional investments, with weekly fund inflows hitting an all-time high of $2.9 billion.

Fresh data from CoinShares reveals that this surge has pushed year-to-date investments to an astounding $13.2 billion, eclipsing the total inflows for the entirety of 2021, which capped at $10.6 billion.

Maintaining its momentum, trading volumes for the week held steady at $43 billion, mirroring the records of the previous week and accounting for a significant 47% of the global bitcoin volumes.

Additionally, global Exchange-Traded Products (ETPs) breached the $100 billion mark for the first time during the week, though a slight price correction towards the week's end saw this figure settling at $97 billion.

In terms of regional distribution, the United States led with inflows of $2.95 billion, while countries like Australia, Brazil, and Hong Kong saw comparatively smaller inflows of $5 million, $24 million, and $15 million, respectively.

Conversely, Canada, Germany, Sweden, and Switzerland collectively experienced outflows totaling $78 million over the week. CoinShares highlighted a concerning trend for 2024 in these regions, despite bitcoin's impressive performance, stating in their latest Digital Asset Fund Flows Weekly Report:

“This year has not got off to a good start, having now seen $685m in outflows so far.”

Bitcoin remained the dominant force with inflows amounting to $2.86 billion last week, representing a staggering 97% of total inflows for the year. Meanwhile, short bitcoin positions saw their highest inflows in a year, totaling $26 million, marking the fifth consecutive week of such activity.

Other notable digital assets such as Polkadot, Litecoin, and BNB Chain also attracted weekly inflows of $3.1 million, $2.3 million, and $1.5 million, respectively. However, the same cannot be said for top smart contract platforms like Ethereum, Solana, and Polygon, which witnessed outflows totaling $14 million, $2.7 million, and $6.8 million during the same period.

In a somewhat encouraging development, blockchain equities saw inflows of $19 million, signaling a turnaround after a six-week period of outflows.

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