The digital asset market has experienced significant growth this week, with products seeing inflows totaling $78 million, the highest since July. According to a new CoinShares market report, investor appetite for crypto products has increased across several jurisdictions, leading to this surge in the market. Inflows into crypto products have been recorded for the second consecutive week after weeks of outflows caused by market volatility and uncertain regulations in the United States.
Growth in Exchange-Traded Products (ETPs)
Exchange-traded products (ETPs) have also witnessed substantial growth, increasing by 37% in the last seven days to reach $1.13 billion. Bitcoin (BTC) recorded an inflow of $43 million, along with short Bitcoin positions gaining $1.2 million after several weeks of outflows. This surge in institutional investor activity highlights their continued interest in the cryptocurrency space.
Ethereum’s Performance and Institutional Interest
In contrast, Ethereum (ETH) has only seen a slight boost in performance following the rollout of six exchange-traded funds (ETFs). Although these funds attracted $10 million in its first week, it pales in comparison to Bitcoin’s massive $1 billion during the same period. This suggests that institutional investors are not as bullish on Ethereum as they were in 2021. Additionally, Ethereum recorded outflows of $1.5 million last week, marking negative results for seven consecutive weeks.
Solana Emerges as Institutional Favorite
Solana (SOL) has emerged as the favorite altcoin among institutional investors in recent months, continuing its remarkable performance last week. The altcoin experienced outflows amounting to $24 million, its highest since March 2022. Despite the key Ethereum rollout, Solana has maintained a consistent streak of weekly inflows, further establishing its authority in the market. Currently valued at $22.22, Solana has experienced a 4% decline within the day and a 30% drop over the past year.
Furthermore, Bitcoin volumes have grown by 16% across trusted exchanges in the last seven days.
Europe Takes the Lead in Crypto Market Inflows
In recent weeks, the United States has faced setbacks, while Europe has emerged as the leading contributor of inflows for crypto products. Last week, 90% of inflows came from Europe, with the United States and Canada accounting for the remaining portion, totaling $9 million. Germany and Switzerland led the pack, accounting for 88% of the total weekly inflows with $37.3 million and $31.3 million, respectively. Europe’s advantage can be attributed to rule clarity and proactive regulation efforts compared to the US, where regulatory actions have led to court cases involving agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) alongside crypto firms.
