December 2, 2023


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Bitcoin dominates as primary focus for digital asset investors: Report

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On February 6, CoinShares, a European investment firm specializing in cryptocurrency, released its “Digital Asset Fund Flows Report.” The report highlights the sustained interest from investors in digital asset investment products, with inflow amounts totaling $76 million in the past week. This marks the fourth consecutive week of positive inflows.

The “Digital Asset Fund Flows Report” from CoinShares indicates a shift in investor sentiment at the beginning of 2023. The report shows that year-to-date inflows have reached $230 million, contributing to the growth in total assets under management (AUM), which currently stands at $30.3 billion – the highest level seen since mid-August 2022.

The report also highlights a strong focus on Bitcoin (BTC)) among investors, with weekly inflows of $69 million, accounting for 90% of total investment flows during the week. The primary sources of investment growth are the United States, Canada, and Germany, with weekly inflows of $38 million, $25 million, and $24 million respectively.

The growth of the crypto market has sparked divided opinions regarding its sustainability. Despite short-Bitcoin inflows totaling $8.2 million over the same period, they have increased by 26% of total assets under management (AUM) over the last three weeks. Although the amount is relatively small compared to long-Bitcoin inflows, it still represents a notable increase. Nevertheless, the short-Bitcoin trade has yet to attract significant interest year-to-date, with total short-Bitcoin AUM dropping by 9.2%.

Inflows into altcoins were also limited, with investment products in Solana (SOL), Cardano (ADA), and Polygon (MATIC) reporting modest decreases. Despite increasing clarity around unstaking, Ether (ETH) producers only received a modest $700,000 in inflows.

The positive inflows into digital asset investment products demonstrate a growing confidence among investors in the market. Additionally, the activity in the altcoin sector indicates the diversity and ongoing evolution of the digital asset market.

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