CoinShares recently published its Digital Asset Fund Flows Report, which revealed that digital asset investment products are attracting significant interest from investors. Last week saw inflows of $76 million, the fourth consecutive week of growth, bringing the year-to-date total to $230 million. This increase has led to a rise in assets under management, which now stands at a high of $30.3 billion since mid-August 2022.
The report highlights that investors are showing a strong preference for Bitcoin, with weekly inflows of $69 million accounting for 90% of total flows. The primary regions contributing to this growth are the United States, Canada, and Germany, with weekly inflows of $38 million, $25 million, and $24 million, respectively.
However, the sustainability of the growth has sparked differing opinions. Although short-Bitcoin inflows amount to only $8.2 million over the same period, they have increased by 26% of total AUM over the past three weeks. Despite this, the short-Bitcoin trade hasn’t garnered substantial interest so far this year, with a 9.2% decline in total short-Bitcoin AUM.
The report also notes minor inflows in altcoins, with some investment products such as Solana (SOL), Cardano (ADA), and Polygoin (MATIC) experiencing modest declines. The digital asset market remains diverse and constantly evolving, as evidenced by Ether (ETH) producers receiving only $700,000 in inflows despite increasing clarity around unstaking.
In conclusion, the continued positive inflows into digital asset investment products highlight investors’ growing confidence in the market, signaling a shift in investor sentiment towards the start of 2023.
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Source: Cointelegraph
