• Digital asset investment products saw inflows of about $117 million last week, the biggest since July 2022.
• Bitcoin accounted for nearly all of the weekly inflows, with $116 million of the total.
• Total assets under management (AUM) rose $28 billion, roughly 43% from inflow lows recorded in November.
Record Breaking Investment Flows
Digital asset investment products saw record breaking inflows of about $117 million last week – the biggest since July 2022. Bitcoin accounted for almost all of these weekly inflows, with $116 million out of the total. This resulted in an increase in total assets under management (AUM) by $28 billion, roughly 43% from inflow lows recorded in November.
Inflows Into Bitcoin Products
Bitcoin products saw a majority of last week’s digital asset investment products inflows, with $116 million out of the total. As Bitcoin price rose above $23,000, inflows into Short Bitcoin products represented approximately 4.4 million dollars worth of investments each week. Other cryptocurrencies also experienced investor interest; Ethereum and Solana had inflows totaling to 2.3 and 1.1 million dollars respectively.
Outflows From Multi-Asset Products
Conversely to other cryptocurrencies, multi-asset investment products experienced outflows for their ninth consecutive week; amounting to 6.4 million dollars worth of investments being taken out over this duration period. Binance and XRP also saw minor outflows amounting to 400k and 200k respectively over this same time frame.
Increase In Trading Volumes
Investment product trading volumes increased 17%, amounting to 1.3 billion dollars traded over the past week compared to year-to-date averages; a higher percentage than that seen across the broader crypto market average at 11%. Germany was found to be leading these investments – accounting for 40% or 46 million dollars worth – followed by Canada ($30M), USA ($26M) and Switzerland ($23M).
Conclusion
Overall it is clear that digital asset investment product demand has been on a steady upward trajectory as we enter 2021; investors continue to show strong confidence in cryptocurrencies as instruments for wealth generation and preservation despite various regulatory challenges faced by companies operating within this space .