Last week, Bitcoin and altcoin investment products witnessed a significant inflow of $1.18 billion USD. Although this figure is below the record $1.5 billion set during the launch of Bitcoin ETFs in October 2021, it underscores the ongoing growth and interest in the digital asset market. Notably, trading volumes reached an all-time high of $17.5 billion last week, a substantial increase from the weekly average of $2 billion in 2022.
The surge in trading volumes, which constituted nearly 90% of the daily transaction volumes on reputable exchanges last Friday, represents a significant deviation from the typical 2-10% range. This highlights the increasing level of activity and engagement in the digital asset space.
The United States emerged as a dominant player with a notable entry of $1.24 billion, while Europe experienced minor outflows; Canada, Germany, and Sweden saw exits of $44 million, $27 million, and $16 million respectively. This trend suggests a potential shift in institutional investors reallocating assets from Europe to the US.
Bitcoin continued to attract significant investor interest with an inflow of $1.16 billion last week, representing 3% of the total assets under management (AuM) in digital asset investment products. Interestingly, short-focused Bitcoin products also recorded a modest inflow of $4.1 million.
Beyond cryptocurrencies, blockchain-focused stocks demonstrated resilience and sustained momentum, securing a total inflow of $98 million. This brings the cumulative inflows over the last seven weeks to an impressive $608 million, highlighting the ongoing interest in blockchain technology and applications. The dynamic landscape of the digital asset market is evidenced by the recent uptick in inflows and record-breaking trading volumes.