Digital asset investment products continue to attract significant inflows, with a total of $224 million pouring in last week. This marks the seventh consecutive week of inflows, bringing the total amount invested in these products to $11 billion, according to the latest weekly report from CoinShares.
Despite the positive trend, James Butterfill, CoinShares’ head of research, pointed out that the pace of inflows is slowing down. He attributed this deceleration to rising uncertainty surrounding US monetary policy. Investors are currently adopting a cautious approach as they await further signals from the Federal Reserve regarding inflation and potential interest rate changes.
Ethereum-related investment products emerged as the top performers for the second week in a row, attracting $295.4 million in fresh capital. This brings the total inflows into Ethereum products to $1.5 billion over the past seven weeks, accounting for about 10.5% of all Ethereum assets under management. Butterfill highlighted that this is Ethereum’s strongest run since the US election period last November, signaling a significant rebound in investor confidence following weeks of outflows due to price stagnation.
On the other hand, Bitcoin experienced a second consecutive week of outflows, with $56 million withdrawn. This brings the total outflows in BTC-related products to approximately $57 million this month. Short Bitcoin products also saw outflows for the second week in a row, totaling $4.1 million. CoinShares attributed this trend to the prevailing policy uncertainty affecting market sentiment.
Among major altcoins, Sui and Chainlink stood out with their performance. Sui recorded $1.1 million in inflows, pushing its total flows to $100 million this year. Chainlink attracted a modest $200,000 investment during the period. However, XRP marked its third week of outflows, losing $6.6 million. Despite this, XRP remains the third-most favored crypto product among institutional investors, who have invested $179 million in the asset so far this year.
Overall, the digital asset market continues to see fluctuations driven by various factors, including policy uncertainty and investor sentiment. As the industry evolves, it will be crucial for investors to stay informed and adapt to changing market conditions.