Digital Asset Investment Fund Record $708 Million Inflows as AUM Hit $53 Billion

Digital asset investment funds have seen an increase in inflows across seven days following a market rebound after days of sell-offs.

A new CoinShares Weekly Crypto Asset Flows Report shows massive inflows into Bitcoin (BTC) and other cryptocurrencies, raising yearly entries to $1.6 billion.

US$708m inflows into Digital Assets last week, outflows from Grayscale abatinghttps://t.co/mk4Kmb8TXb

— James Butterfill (@jbutterfill) February 5, 2024

Digital asset funds saw a total of $708 million in inflows last week boosting the total in 2024 to $1.6 billion and Assets Under Management (AUM) to $53 billion slightly above last year’s figure.

Since the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) the market has seen an uptick in trading figures around the crypto market leader. However, wide-ranging outflows were recorded in the weeks after the approval, due to a slight market correction.

Several industry analysts pointed to the reactions after the Bitcoin ETF approval as significant huge inflows were recorded in Q4 2023.

Bitcoin Dominates the Digital Assets Market

Bitcoin continues its dominance of institutional funds flowing into the cryptocurrency market, with 99% of total inflows last week.

The market leader recorded $703 million in inflows while shorts on Bitcoin posted $5.3 million in outflows. Bitcoin’s massive upturn this week comes after the asset recovered lost gains in the last seven days.

At press time, BTC exchanges hands at $42,860, up 1.90% in the last seven days, posting a 21% increase in trading volumes at $16.8 billion.

Monthly flows for the asset are now at $88.6 million while yearly inflows stand at $1.5 billion raising the AUM to $38.1 billion.

Newly issued Bitcoin ETFs have contributed to this number as they have recorded $1.9 billion taking the yearly total to $7.7 billion although incumbent outflows total $6 billion. Per the CoinShares report:

“These new ETFs have now averaged $1.9 billion inflows over the last four weeks, bringing total inflows since launch (11th January) to $7.7 billion. This has been offset by outflows of incumbent issuers buy data highlights a significant reduction in the momentum of these outflows in recent weeks.” 

Increased Activity Across the Crypto Market

Ethereum (ETH) recorded $6 million outflows last week while Solana (SOL) and Cardano (ADA) saw $13.4 million and $0.6 million inflows respectively.

This week’s losses have dragged Ethereum products into the red zone, but the asset still boasts $9.8 billion AUM.

Solana remains under water after a 4% decline in the last seven days while Cardano is up by $0.5% in the same period.

Multi asset recorded gains of $2.4 million taking yearly gains to $30 million.The United States saw the majority of inflows with $721 million while Switzerland and Germany posted gains of $20.9 million and $3.5 million respectively.

Canada recorded outflows of $31.3 million in outflows bringing yearly exits to $241 million.