Rising interest in Bitcoin and some other cryptocurrencies is driving the entire digital asset market higher. According to a report distributed by CoinShares, digital asset investment products saw inflows totaling $293 million last week, bringing the past seven- week run of inflows above the $1 billion mark. Year to date inflows stood just a bit higher at $1.14 billion – showing that recent activity is driving all of the returns.
The report states that Bitcoin ETP (exchange-traded products) made up almost 20% (19.5%). At the same time, Ethereum apparently experienced its larges inflows since August 2022 – more than a year ago. This past week $49 million moved into ETH with CoinShares calling a turnaround in sentiment.
Total assets under management (AuM), as a result of these inflows have risen 9.6% over the last week and 99% since the beginning of the year. AUM for crypto now stands at the highest level since the fund failures of May 2022 at $44.3 billion.
Blockchain equity ETFs saw $14 million, the largest since July 2022, bringing year-to-date flows to a positive position of $11 million.
The US market drove the most activity both month-to-date and year-to-date.
Beyond the inflationary concerns that has raised interest in Bitcoin, the recent chatter about the inevitability of a Bitcoin ETF – which may open the door for others – has been a huge factor in generating positive sentiment.