In a remarkable financial development, investment products related to cryptocurrencies have achieved unprecedented inflows, with last week’s figures topping $2.7 billion, pushing the annual total to a staggering $13.2 billion. This figure not only eclipses the cumulative inflows recorded for the entirety of 2021, which stood at $10.6 billion, but also indicates a robust growth trajectory for digital asset investments.
Bitcoin Dominates Weekly Transaction Volumes
This surge in investment has been accompanied by substantial transaction activities, particularly in Bitcoin, which represented nearly half of the global Bitcoin trade volume at $43 billion. Despite this upswing, the market experienced a downturn over the last weekend, causing the aggregate value of global ETPs to decline to $97 billion.
The United States has emerged as a significant contributor to these inflows, with investments amounting to $2.95 billion. Concurrently, certain regions witnessed minor capital withdrawals, with Canada, Germany, Sweden, and Switzerland collectively registering an outflow of $78 million in the previous week.
Bitcoin’s overwhelming dominance is evident, with inflows totaling $2.86 billion last week alone. This amount represents a 97% share of the total year-to-date inflows. Notably, short-focused Bitcoin transactions experienced the year’s largest inflow for a fifth consecutive week, amassing $26 million.
Altcoins and Blockchain Stocks Also See Activity
In contrast to Bitcoin’s performance, several altcoins, including Ethereum, Solana, and Polygon, faced outflows of $14 million, $2.7 million, and $6.8 million, respectively. However, some digital currencies like Litecoin and Cardano bucked the trend with positive inflows. Additionally, blockchain-focused equities reversed a six-week outflow trend by attracting $19 million.
The continuous and lively engagement with digital asset markets is garnering increased interest from investors, signalling a sustained growth potential for the sector.