According to a recent CoinShares weekly market report, digital asset investment products have experienced four consecutive weeks of inflows, with Bitcoin (BTC) recording $55.3 million. This increase in investment can be attributed to the anticipation surrounding the potential approval of a spot BTC ETF in the United States.
Renewed Interest in Digital Asset Products and Rise in Assets Under Management (AUM)
The report reveals a renewed interest in digital asset products, accompanied by a decrease in the United States market share and a rise in assets under management (AUM). In the past four weeks alone, total inflows have reached $179 million, marking a significant turn of events for the asset class this year.
Bitcoin led the pack with $55.3 million, comprising approximately 83.7% of the total inflows. This substantial growth is a stark contrast to previous weeks. Short BTC positions also saw net gains of $1.7 million, further emphasizing the positive sentiment surrounding Bitcoin.
Solana (SOL) remained a favorite altcoin among institutional investors, with $15.5 million in inflows. This brings its year-to-date (YTD) inflows to $74 million, the highest among altcoins. With 23.4% of weekly inflows and 47% of assets under management, Solana is the most preferred asset after Bitcoin, accumulating a total of $43 million this month.
Meanwhile, Ethereum (ETH) has been experiencing outflows, leading to speculation about whether it can maintain its position as the leading altcoin. Despite being referred to as the “ETH killer,” Ethereum has had a poor run this month, with consecutive weeks of outflows, including $7.4 million last week and $7.5 million the previous week.
Institutional Interest and Market Speculation
The approval of a spot BTC ETF has garnered significant interest from institutional investors this year. Many institutions have made plans and projected potential approval based on the SEC’s decision not to appeal the Grayscale ruling and the recent amendments made by BlackRock, Fidelity Digital, and Ark Invest to their applications.
However, it is worth noting that recent investments following the renewed push for a spot BTC ETF are not as substantial as they were in June when multiple applications were in the works. This suggests that investors are proceeding with more caution this time around.
According to James Butterfill, there has been a shift in investor sentiment, as total inflows recorded last month amounted to $179 million, while inflows in June reached a staggering $807 million. Geographically, Europe has outperformed the United States, with Switzerland and Germany leading the charge with figures of $45 million and $10 million, respectively.
