Last week, digital asset investment products recorded net inflows of $2.9 billion, marking the second consecutive week of record inflows, according to CoinShares’ latest weekly report.
With this performance, digital asset products set a new annual net flow record of $13.2 billion, exceeding the total inflows of $10.6 billion during the 2021 bull market.
Moreover, the U.S. spot Bitcoin exchange-traded fund has had a significant impact on the performance of digital asset products. This is clearly evident in the total value of assets managed by cryptocurrency ETPs. It reached an unprecedented milestone of $100 billion before being slightly adjusted to $97 billion.
However, despite significant inflows, volume remained steady at $43 billion.
“Trading volume this week totaled $43 billion, equaling the previous week’s record and accounting for 47% of total global Bitcoin volume,” added James Butterfill, head of research at CoinShares.
In the United States, Bitcoin dominates global flows.
Bitcoin remained dominant, with inflows totaling $2.896 billion, accounting for 99.9% of the week’s total $2.916 billion.
Analysis of inter-provider flows shows that the Grayscale GBTC ETF continued to experience significant outflows totaling $1.2 billion, bringing annual outflows to $11.79 billion. ProShares BITO and Purpose ETFs also saw outflows of $20 million and $36 million, respectively.
Conversely, BlackRock’s IBIT ETF recorded inflows of $2.48 billion, surpassing its closest competitor, Fidelity FBTC, which attracted $718 million.
Geographically, the United States accounted for almost all inflows, attracting $2.95 billion, followed by Australia and Brazil, with $5 million and $23 million, respectively.
However, countries such as Canada, Germany, Switzerland and Sweden saw outflows ranging from $9.7 million to $32.6 million.
While Bitcoin is thriving, the blockchain network that powers smart contracts has faced challenges, with various leaks occurring in the past week on Ethereum, Solana, and Polygon. Ethereum outflows amounted to $13.9 million, while Solana recorded $2.7 million outflows.
Surprisingly, Short Bitcoin products saw positive net flows despite the bullish sentiment surrounding Bitcoin, attracting $26 million in inflows in one week, taking annual flows to $90 million.
Other assets that saw inflows last week included Polkadot $3.1 million, Litecoin $2.3 million, Multi-asset $3.2 million, Binance $1.5 million, and Cardano $1.2 million.