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(Kitco News) - Digital asset investment products saw a third consecutive week of inflows last week as the recent spot Bitcoin (BTC) exchange-traded fund (ETF) filings by multiple firms continue to drive interest in the asset class, with many crypto traders proclaiming that the next bull market cycle has begun.
Data provided by CoinShares, a leading European alternative asset manager specializing in digital assets, shows that $136.1 million flowed into the various investment products tracked by the firm over the past week, bringing the total inflows over the past three weeks to $470 million.
The sudden influx of funds has erased the prior nine weeks of outflows and brought the year-to-date (YTD) flows to a net positive of $231 million, CoinShares said.
Weekly crypto asset flows. Source: CoinShares
ProShares ETFs saw the largest inflows with $55.3 million in new funds added over the past week, bringing the YTD inflows to $281 million. The second largest gainer was ETC Issuance GmbH, which recorded $33.9 million in weekly inflows, bringing its YTD total to $187 million.
Flows by provider. Source: CoinShares
Bitcoin continues to be the main focus of inflows with a total of $133 million flowing into BTC-related long products last week for a YTD total of $290 million. The flows into BTC represent 97% of the total flows into digital asset investment products.
Products that offer the ability to short BTC experienced $1.8 million in outflows last week, the 11th consecutive week of outflows, which “further demonstrates investors favor the asset over altcoins at present,” CoinShares said.
Despite the 11 straight weeks of outflows, short Bitcoin products still have the second-highest YTD inflows of all individual asset products with $58 million.
Flows by asset. Source: CoinShares
While the momentum from the flurry of Bitcoin ETF filings continues to provide a boost to the market, “Trading turnover has slowed,” CoinShares said, “with investment products totaling US$1bn for the week compared to US$2.5bn average in the prior 2 weeks. These lower volumes may be due to the seasonal effects, where lower volumes are typically seen during July and August.”
And while markets may be focused on institutional adoption in the U.S., Germany saw the largest inflows to investment products last week with $61.5 million as compared to $55.9 million flowing into U.S.-based products.
Flows by exchange country. Source: CoinShares
That said, U.S.-based investment products continue to dominate the field in terms of total assets under management, representing $27,294,000,000 out of the $36,703,000,000 total.
