(Kitco News) Digital asset investment products saw a massive surge in inflows last week as the first batch of spot Bitcoin (BTC) ETFs in the United States were finally approved.
According to the latest data provided by CoinShares, the total assets under management (AuM) for globally listed products increased by $1.18 billion during the second week of the new year, continuing the trend of inflows seen at the end of 2023.
The United States dominated in terms of investments made by exchange countries, accounting for $1.24 billion of total inflows, with Switzerland also adding $21 million.
“We suspect the outflows seen in Europe & Canada (Canada US$44m, Germany US$27m & Sweden US$16m) were basis traders looking to switch from Europe to the US,” said James Butterfill, CoinShares head of research.
“Bitcoin saw US$1.16bn inflows last week, representing a significant 3% of total assets under management (AuM),” Butterfill said, “while short-bitcoin also saw minor inflows totaling US$4.1m.”
Ethereum also managed to extend its streak of inflows to 10 weeks with an increase of $26 million last week, while XRP also saw $2.2 million. “Solana was the notable exception, seeing only US$0.5m inflows last week,” Butterfill said.
Blockchain equities also saw large inflows last week, adding $98 million to the previous week’s $24 million and bringing total inflows over the last 7 weeks to $608 million, according to the report.
Data provided by Alternative shows that sentiment in the crypto market has now switched to “Neutral” after remaining in “Greed” territory since October 24, its longest streak since November 2021, near the end of the previous bull market.
After spiking above $48,600 in the wake of Thursday’s ETF launches, Bitcoin briefly fell below $42,000 on Friday afternoon as traders took profits, and the top crypto treaded water between $42 – $43k throughout the weekend.
At the time of writing, BTC last traded at $42,455.84, up 1.84% on the daily chart.
