In the initial week of 2024, digital asset investment funds attracted a noteworthy $151 million in inflows, driven by institutional investors gearing up for potential approval of a spot Bitcoin (BTC) ETF by the Securities and Exchange Commission (SEC).
CoinShares’ Digital Asset Fund Flow report signals a bullish market sentiment, witnessing a surge in asset prices at the year’s commencement, followed by a modest correction.
The report outlines that crypto investment products gained $151 million within the last seven days, contributing to a cumulative influx of $2.3 billion since Grayscale’s pivotal victory over the SEC.
Amid ongoing ETF optimism, industry narratives are dominated by various developments, including firms making final adjustments to their filings, onboarding new partners, and maintaining a positive outlook.
Matrixport’s year-end report, projecting a $50,000 Bitcoin price by the end of January, fueled investor anticipation for a potential upward trend. As Bitcoin surpassed $45,000, institutional products for both Bitcoin and altcoins saw new entrants.
Bitcoin, the market leader, attracted the majority of inflows, totaling $113 million, while Short Bitcoin experienced outflows of $1 million in the past week. Equities also displayed a strong start to the year with $24 million in inflows.
On the altcoin front, Ethereum (ETH) maintained its positive momentum from Q4 2023, securing $30 million in inflows as its price surpassed $2,250. The staking feature continues to attract wealth managers, enticing investors with profit potential.
Solana (SOL), often dubbed the “ETH killer” and favored by institutional investors in 2023, faced consecutive losses, with its products witnessing $5 million in outflows over the past seven days. Despite a robust December surge, Solana’s momentum slowed, and it traded at $94 at press time.
Cardano (ADA), another “ETH killer” in the crypto community, experienced inflows of $4 million. Ripple (XRP) and Avalanche (AVAX) attracted $1 million and $2 million in inflows, respectively, despite both assets recording losses in the broader market due to a sell-off.
Multi-asset products saw gains of $5 million, bringing its assets under management (AUM) to $3.2 billion, while Bitcoin’s AUM reached $37.8 billion. The total market AUM remained above $52 billion, with decentralized finance (DeFi) figures on the rise.
In terms of geographical distribution, the United States led with 55% of inflows, followed by Germany and Switzerland with 21% and 17%, respectively.