Bitcoin Dominates As Crypto Investments Surge: $151M Inflows In 2024's First Week

In a promising kick-off to the year 2024, digital asset investment products have witnessed a significant surge, with total inflows reaching a noteworthy $151 million in the first week alone. The latest data, as reported by the CoinShares Digital Asset Fund Flows Weekly Report, sheds light on the dominance of Bitcoin in attracting the lion’s share of these inflows.

🟢 2024 is off to a strong start, with US$151 million in inflows! Total inflows since the Grayscale vs SEC lawsuit now stand at US$2.3 billion.

Notable asset inflows include:$BTC: US$113m inflows$ETH: US$29m inflows$ADA: US$3.7m inflows$AVAX: US$2m inflows$LTC: US$1.4m… pic.twitter.com/9wfshmqxsB

— CoinShares (@CoinSharesCo) January 8, 2024

The report reveals that the cumulative inflows into digital asset investment products have now reached a substantial $2.3 billion since the conclusion of the Grayscale vs SEC lawsuit. This accounts for 4.4% of the total assets under management (AuM). Notably, the launch of the spot-based ETF in the United States is yet to occur, but the majority of the inflows, 55%, originated from US exchanges. Germany and Switzerland also played significant roles, contributing 21% and 17% of the total inflows, respectively.

Bitcoin Leads The Pack

Bitcoin emerged as the primary beneficiary, witnessing a massive influx of $113 million in the first week of 2024. Over the past nine weeks, Bitcoin’s total inflows have accounted for 3.2% of the AuM. Interestingly, the scenario for short-Bitcoin investment products took an unexpected turn, experiencing outflows totalling $1 million in the first week of the year. This contradicts the anticipation of a “buy the rumor, sell the news” event surrounding the potential launch of the ETF in the US. Surprisingly, outflows over the last nine weeks amounted to a substantial $7 million.

Ethereum, the second-largest cryptocurrency, also experienced positive sentiment, with inflows totalling $29 million in the first week. Over the past nine weeks, Ethereum’s cumulative inflows reached $215 million, signalling a notable shift in investor sentiment. However, Solana faced a less favourable start to the year, with outflows totalling $5.3 million.

Several altcoins witnessed notable inflows during the period, including Cardano, Avalanche, and Litecoin, attracting $3.7 million, $2 million, and $1.4 million, respectively. In addition to individual cryptocurrencies, blockchain equities displayed a strong performance, attracting $24 million in inflows over the first week of 2024. The robust start to the year for both digital assets and blockchain equities suggests a positive outlook for the broader cryptocurrency market as it continues to attract significant investor interest.

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