Digital asset investment products enjoyed continued inflows for the second consecutive week. This was revealed in crypto asset management firm CoinShares’ weekly analysis report released today, 9 October.
The figure, totalling $78million, has now reached the highest volume levels since July 2023. The report also noted a 37% rise to $1.13billion for the week in trading volumes for crypto exchange-traded products (ETPs). There was a 16% rise in Bitcoin ($BTC) volumes on trusted exchanges too.
About 90% of inflows came from Europe, while the US and Canada saw just $9m inflows combined. This showed a continued regional divergence in sentiment. Here, Germany and Switzerland took the lead with over $37m and $31m, respectively. These two countries accounted for about 88% of all crypto asset products inflow last week.
When it comes to cryptocurrencies, Bitcoin was the main recipient of a chunk of inflows. The last week saw inflows totalling $43m for the top coin. It was also noted that its recent price strength posed an opportunity for investors to add to short-Bitcoin positions. This saw inflows of $1.2m over the same period.
Solana ($SOL) was the second to follow. It outshined other altcoins with a total of almost $24m inflows. This has been its largest week of inflows since March 2022. The report called it the “altcoin of choice” as it continues to assert its dominance particularly in light of the recent Ethereum product launches.
This news for Solana comes in the light of several positive developments within the network, along with its improved performance and reliability. The network boasts a range of leading mainstream companies supporting the Solana ecosystem, ranging from Google to Stripe and Discord. It has a total market capitalisation of about $9.2bn and a 24-hour traded volume of approximately $326m.
According to CoinShares, last week was an important test for Ethereum ($ETH) investor appetite following the launch of six futures-based exchange-traded funds (ETFs) in the US. However, the new ETFs attracted just under $10 million in the first week which exposed a “tepid appetite” for the same.
The launch of futures based Bitcoin ETFs, on the other hand, saw a whopping $1billion in the first week. The report attributed the recent event to the poor investor appetite for digital assets at present.
Therefore, it is unfair to compare the Ethereum ETFs to the Bitcoin futures ETF launched in October 2021, as appetite was much higher for the asset class overall back then, added the report.
Last month, CoinShares revealed its plans to expand its operations in the US by introducing its first offerings in the country. The decision to launch a hedge fund division came despite the country’s tough crypto regulation climate.
Called CoinShares Hedge Fund Solutions, the new division features crypto investment products aiming to connect traditional investors and the digital asset industry. The move was called to be the company’s response to the growing demand for products based on cryptocurrencies like Bitcoin.
The September announcement also said: “By offering a diverse range of products, across the spectrum of beta and alpha strategies with hybrids in between, CoinShares aims to cater to the unique needs of each institution, facilitating the creation of a well-rounded and optimised crypto portfolio.”
