According to Report, digital asset investment products saw $117 million in inflows last week.
On Jan. 30, a European cryptocurrency investment firm published its “Digital Asset Fund Flows Report,” which revealed that digital asset investments experienced a surge in inflows last week, reaching $117 million, the highest since July 2022.
The firm reported that the sector’s total assets under management rose to $28 billion, a 43% increase from its November 2022 lows. The improvement in investment product volumes was evident, with $1.3 billion traded during the week, a 17% increase compared to the year-to-date average. Meanwhile, weekly volumes in the digital asset market have risen by an average of 11%.
Germany saw the highest inflows last week, accounting for 40% of the total ($46 million), followed by Canada, the United States, and Switzerland, which received $30 million, $26 million, and $23 million, respectively. Most of the inflows were directed toward Bitcoin BTC $22,838 products, with $116 million, while minor inflows were seen into short-Bitcoin products at $4.4 million, indicating a polarized opinion.
The report also revealed that multi-asset investment products continued to see outflows for the ninth consecutive week, totaling $6.4 million. According to the head of research, this suggests that investors are opting for more selective investments. This trend was evident in altcoins, such as Solana SOL $24, Cardano ADA $0.371 and Polygon MATIC $1.0870 saw inflows, while Bitcoin Cash BCH $133, Stellar XLM $0.091 and Uniswap UNI $6.53 experienced minor outflows.
Investors also showed interest in blockchain equities, with inflows totaling $2.4 million. However, a closer examination reveals that sentiment remains divided across providers.
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Overall, the digital asset market saw significant growth last week, with investment products experiencing record inflows and improved volumes. The overall trend suggests that investors are becoming more selective in their investments, with a divided sentiment toward blockchain equities.
(JUDITH BANNERMANQUIST, Cointelegraph, 2023)