- Digital Asset Investments: An Overview
- Ethereum and Solana Status
- Regional Differences in Inflows and Outflows
Digital asset investment products experienced net inflows of $321 million for the second consecutive week, according to CoinShares. The surge was largely attributed to the U.S. Federal Reserve’s decision to cut interest rates by 50 basis points, which was viewed positively by the market.
Digital Asset Investments: An Overview
Total assets under management (AuM) rose by 9%, while weekly trading volumes also increased by 9% to $9.5 billion. Bitcoin-based products led the inflows, attracting $284 million last week. The bullish sentiment surrounding Bitcoin also drove net inflows of $5.1 million into short-Bitcoin products, reflecting continued interest in hedging strategies.
Ethereum and Solana Status
Solana-based investment products maintained their positive streak, bringing in $3.2 million in net inflows, bolstered by announcements at the Solana Breakpoint conference in Singapore. Conversely, Ethereum-based products registered net outflows of $29 million, marking the fifth consecutive week of outflows for the second-largest cryptocurrency. Quote: "Outflows were primarily linked to competition from newly launched U.S. spot Ethereum ETFs." - Grayscale representative.
Regional Differences in Inflows and Outflows
Regionally, U.S.-based investment products led the inflows, with $277 million added. This was followed by Switzerland, which saw $63 million in net inflows, the second-largest weekly inflows this year. In contrast, Germany, Sweden, and Canada experienced outflows of $9.5 million, $7.8 million, and $2.3 million, respectively.
The continued inflows into digital asset products signal renewed interest following recent market volatility, particularly in the wake of the Federal Reserve’s monetary policy shift. Investors are closely monitoring further developments to gauge the long-term impact on digital assets.
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