On Feb. 6, European cryptocurrency investment firm CoinShares released its “Digital Asset Fund Flow Report,” which revealed that investors are showing strong interest in digital asset investment products, with inflows totaling of $76 million last week, marking the fourth consecutive week of inflows. .
The report indicates a turnaround in investor sentiment for the start of 2023, with year-to-date inflows now at $230 million. This growth has led to an increase in total assets under management (AUM), which now stands at $30.3 billion, the highest since mid-August 2022.
Investors are mainly focused on Bitcoin (BTC), with weekly inflows of $69 million, representing 90% of the total flows for the week. This investment growth comes primarily from the United States, Canada, and Germany, with weekly inflows of $38 million, $25 million, and $24 million, respectively.
Opinions are divided on the sustainability of this growth, however, with Bitcoin short inflows totaling $8.2 million over the same period. Although these inflows are relatively small compared to long-term Bitcoin inflows, they have increased by 26% of total AUM in the last three weeks. Despite this, trading short Bitcoin has not attracted considerable interest so far this year, with total short Bitcoin AUM falling 9.2%.
Altcoins also saw some minor inflows, with investment products Solana (SOL), Cardano (ADA), and Polygon (MATIC) posting modest declines. Despite the growing clarity around the delisting, Ether (ETH) producers only received $700,000 in tickets.
Related: Digital Asset Investment Products Record Largest Inflows Since July 2022: Report
Overall, positive inflows into digital asset investment products highlight growing investor confidence in the market. Altcoin activity also suggests that the digital asset market remains diverse and constantly evolving.
