admin Digital asset investment products recorded their second-lowest inflows in eight weeks, bringing in just $270 million, according to the latest CoinShares fund flow report. This modest addition raises the year-to-date inflow to $37.3 billion. The contrasting performance of different digital assets played a significant role in shaping this outcome.
CoinShares Head of Research, James Butterfill, pointed out that the minimal inflow could be attributed in part to the impact of recently launched options on products. Despite their promising early volumes, options on US ETFs have failed to spark an uptick in exchange-traded product (ETP) volumes, which saw a significant drop from $34 billion to $22 billion over the week.
Ethereum and XRP Shine While Bitcoin Faces Profit-Taking
Large-cap alternative cryptocurrencies like Ethereum and XRP outperformed Bitcoin, which experienced its first notable outflow since early September. Bitcoin’s outflows totaled $457 million, indicating profit-taking amid the recent price surge toward the $100,000 mark.
Conversely, Ethereum registered a turnaround, attracting $634 million in new inflows, pushing its year-to-date inflows to $2.2 billion—surpassing its 2021 performance. XRP also saw a significant inflow of $95 million, largely due to optimism surrounding a potential XRP ETF launch in the United States. XRP’s price surged to a seven-year high, exceeding $2, with its market capitalisation reaching $150 billion.
US and Hong Kong Dominate Regional Inflows
Regionally, the United States led inflows with $266 million, followed by Germany with $12.3 million. In contrast, Switzerland and Canada recorded small outflows totaling $36 million.
Hong Kong also saw notable activity, with $39 million in inflows driven by strong performance in Bitcoin ETFs. According to SoSo Value data, Hong Kong’s three Bitcoin spot ETFs are nearing $500 million in total net assets. The ChinaAMC Bitcoin ETF leads with $277.48 million, followed by Bosera Hashkey Bitcoin ETF at $153 million, and the Harvest Bitcoin Spot ETF with $40 million.
Despite the mixed results, digital asset investments continue to reflect growing interest, albeit with some variability across the market. As investors adjust to the introduction of new financial products, such as options on ETFs, fluctuations in inflows are expected. Bitcoin’s recent outflow, in particular, highlights how investors are leveraging recent gains for profit-taking.
Ethereum and XRP’s strong performance suggests that market sentiment remains positive towards alternative digital assets, especially as institutional support grows. The high inflows for Ethereum point to renewed confidence in its long-term potential, fueled by recent network upgrades and scalability improvements. XRP’s surge, meanwhile, indicates mounting enthusiasm for its utility in cross-border payments and the possibility of an ETF launch.
In the broader context, the leading role of the US and Hong Kong underscores the pivotal positions these regions hold in shaping the global digital asset landscape. With the continued evolution of the regulatory environment and product offerings, these regions are likely to remain influential in the growth trajectory of the digital asset market.
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