In a significant development, investment products related to digital assets have seen inflows for the first time in five weeks, totaling $130 million.
Breakout Trend in Digital Asset Investment Products
Exchange-Traded Product (ETP) volumes, however, continued to decline despite this encouraging upswing, with a weekly total of $8 billion, significantly less than April’s average of S$17 billion. This decrease highlights the declining involvement of ETP investors in the cryptocurrency ecosystem; they now make up only 22% of all volumes on international trustworthy exchanges, compared to 31% the month before.
In digital asset investment products, the US has become a major player, accounting for $135 million of inflows. Interestingly, the well-known incumbent Grayscale saw its lowest weekly withdrawals of $171 million since January. In the meantime, $14 million in inflows were recorded in Switzerland.
Unlike other weeks, Hong Kong had a sharp decline in inflows, totaling only $19 million. This suggests that seed capital may have played a major role in the spike in inflows that followed the introduction of Bitcoin ETFs. However, withdrawals from Canada and Germany persisted, totaling $20 million and $15 million, respectively, bringing their outflows for the year to date to a total of $660 million.
Bitcoin’s Comeback Despite Ethereum’s Uncertainty
A promising $144 million surge into Bitcoin itself helped it recover lost territory after a drab month. In contrast, $5.1 million was taken out of short-Bitcoin ETPs, extending a trend of $18 million in withdrawals over the previous eight weeks.
Additionally, the restrained reaction from regulators in the US concerning spot Ethereum ETF applications has sparked speculation about potential delays in approvals, which may have led to outflows related to Ethereum amounting to $14 million last week.
May 2024, Cryptoniteuae
