Digital asset markets saw a fourth straight week of inflows from institutional investors. CoinShares data shows that part of the observed momentum can be attributed to growing expectations for a Bitcoin exchange-traded fund (ETF) license in the United States.
The total value of assets under management increased significantly, reaching $33 billion, indicating a growth rate of 15% since the beginning of September. However, investors are showing a greater degree of caution than in their response to BlackRock’s announcement in June.
The recent inflow of funds, although possibly related to the upcoming introduction of a Bitcoin ETF in the US, is very modest compared to the inflows in June.
Stocks: Digital asset investment products saw inflows for the fourth consecutive week totaling $66 million. Total assets under management have now risen to US$33 billion.
Solana saw an additional $15.5 million in inflows last week, bringing YTD inflows to $74 million, making it the most popular altcoin this year…
— Wu Blockchain (@WuBlockchain) October 23, 2023
Bitcoin leads digital assets: $315 million in flows this year
According to the report, a large portion of the flows seen in the previous week amounted to $55.3 million, representing 84% of the total. This flow was specifically directed towards Bitcoin-related investment products. As a result, cumulative flows of Bitcoin products during the current year reached a total of $315 million.
Solana saw an additional infusion of $15.5 million during the previous week, resulting in a cumulative inflow of $74 million for the year. This remarkable performance positions Solana as the leading alternative cryptocurrency so far this year.
Source: Coinshares
On the other hand, amid ongoing concerns, Ethereum had a challenging week as it observed a significant outflow of $7.4 million. Notably, Ethereum was the only altcoin to experience a decline in its financial performance during this period.
Other altcoins such as Cardano (ADA) and Binance Coin (BNB) saw small inflows of $0.1 million and $0.2 million, respectively.
James Butterville, head of research at CoinShares, noted that the inflows observed the previous week had not yet achieved the same volume as those seen earlier this year when BlackRock initially applied for the Bitcoin ETF.
Bitcoin slightly below the $34K level today. Chart: TradingView.com
The butterfly said:
“Although the latest inflows are likely related to excitement over the launch of a Bitcoin ETF in the US, they are relatively low compared to the initial inflows that followed BlackRock’s announcement in June.”
Navigating the Digital Asset Landscape: Trends and Cautions
Digital assets are becoming more popular, and more people are investing in them. However, some investors are cautious about these assets, and we do not know whether they will continue to be cautious. We have to wait and see if the market will change and bring new trends or opportunities to investors in the next few weeks.
The world of digital assets is growing rapidly, as more and more people are putting their money into cryptocurrencies and other digital investments. Despite this, some investors are still cautious and do not rush things.
We cannot predict whether this cautious approach will continue or whether the market will surprise us with new trends and opportunities in the coming weeks. It’s an exciting time in finance, and we’ll have to keep a close eye on how things develop.
(The content of this website should not be construed as investment advice. Investing involves risk. When you invest, your capital is at risk.)
Featured image from Ledger Insights