On January 30, European cryptocurrency investment firm CoinShares released its “Digital Asset Fund Flow Report,” which revealed that investments in digital assets saw a surge in flows last week, reaching $117 million.the highest since July 2022.
CoinShares reported that the sector’s total assets under management reached $28 billion, up 43% from the November 2022 lows. The improvement in investment product volumes was evident, with $1.3 billion traded during the week, an increase of 17% compared to the year-to-date average.. Meanwhile, weekly volumes in the digital asset market have increased by an average of 11%.
Germany recorded the largest inflows last week, with 40% of the total (USD 46 million), followed by Canada, the United States and Switzerland, which received USD 30, USD 26 and USD 23 million, respectively. The bulk of inflows went into Bitcoin (BTC) products at $116 million, while smaller inflows were seen in short-term Bitcoin products at $4.4 million, indicating polarized sentiment.
The report also revealed that multi-asset investment products continued to record outflows for the ninth consecutive week, totaling $6.4 million.. According to James Butterfill, head of research at CoinShares, this suggests that investors are opting for more selective investments. This trend was evident with altcoins such as Solana (SOL), Cardano (ADA) and Polygon (MATIC) all seeing inflows, while Bitcoin Cash (BCH), Stellar (XLM) and Uniswap (UNI) saw minor outflows.
Investors also showed interest in blockchain stocks, with inflows totaling $2.4 million. Nevertheless, a closer examination reveals that sentiment remains divided among the various providers.
Generally, the digital asset market saw significant growth last week, with investment products posting record inflows and better volumes. The general trend suggests that investors are becoming more selective in their investments, with sentiment divided towards blockchain stocks.
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