In the evolving world of digital asset investments, the past week witnessed significant developments. Net inflows into U.S. ETFs have reached a total of $1.25 billion since their launch. However, this growth is uneven as established ETFs struggle with significant outflows while newly issued ETFs attract attention.
Established U.S. ETF players faced challenges with high-cost issuers experiencing a total of $2.9 billion in outflows, coinciding with the launch of new spot-based ETFs on January 11, 2024. In contrast, these new ETFs have seen a notable total inflow of $4.13 billion since inception, surpassing the losses of their costlier counterparts as market dynamics shift towards cost-effective and innovative offerings.
Regionally, the U.S. emerged as a hotspot with $263 million in net inflows, while Canada and Europe combined saw a total of $297 million in net outflows, indicating a subtle migration of assets towards the U.S. market, where competitive fees are currently more attractive.
Bitcoin experienced modest outflows of $25 million, but the highlight is the extraordinary high trading volumes last week, reaching $11.8 billion, a sevenfold increase compared to typical weekly volumes in 2023. Notably, 63% of all Bitcoin volumes on reliable exchanges were attributed to ETP (Exchange Traded Product) activity, emphasizing the dominant role of ETPs in the current trading environment.
Altcoins, including Ethereum and Solana, faced challenges with outflows of $14 million and $8.5 million, respectively, highlighting nuanced dynamics and shifting investor sentiments within the altcoin market. On a positive note, Blockchain-focused stocks continued their upward trend with a significant inflow of $156 million, marking the peak of a nine-week strong run totaling $767 million, underlining the growing allure of Blockchain-related investments.