Digital Asset Investment Products Recorded $882M Inflows Last Week, Bitcoin ETFs Lead the Charge

Digital asset investment products recorded $882 million in inflows last week, marking the fourth consecutive week of gains, according to the latest report from CoinShares.

Digital asset investment products encashed a stellar $882 million in the seven-day period to March 17, registering the fourth straight week of inflows, according to the latest report by CoinShares on Friday.

This marks the strongest weekly performance since early March and brings the year-to-date (YTD) total to $6.7 billion. This figure is rapidly approaching the February peak of $7.3 billion, showcasing a strong resurgence of institutional interest in the crypto market.

The trend highlights growing confidence in the sector, fueled by notable surges in crypto market prices and increasing adoption of exchange-traded products (ETPs) tied to digital assets. Last week's performance showcases the strongest weekly performance since early March.

Bitcoin ETFs Attract Vast Majority of New Institutional Crypto Investment

Among individual crypto assets, Bitcoin (BTC) led with an impressive $867 million in inflows. This accounts for the vast majority of the week's total and continues the strong institutional demand for BTC.

Since the launch of the first U.S.-listed spot Bitcoin ETFs in January 2024, these products have attracted a staggering cumulative $62.9 billion in net inflows.

This surpasses the previous milestone of $61.6 billion reached in February and underscores the sustained institutional appetite for Bitcoin exposure.

While Bitcoin remains the dominant asset, short-Bitcoin investment products saw only minor $1.5 million in outflows. This suggests that despite some bearish commentary, the overall sentiment remains largely bullish on BTC.

Ethereum Lags in Institutional Appeal; Sui Outpaces Solana in Altcoin Inflows

In contrast, Ethereum (ETH) investment products brought in just $1.5 million in inflows last week. Despite a notable price rally for ETH in recent days, it seems to have not yet drawn the same level of attention from institutional investors.

Among other altcoins, Sui saw the highest inflows with $11.7 million last week. This pushes its YTD inflows to $84 million, overtaking Solana, now at $76 million for the year.

Solana, Avalanche, and Chainlink either saw negligible gains or slight outflows. These mixed results suggest that while some investors are diversifying into new projects, others are concentrating their positions in Bitcoin and a select few emerging tokens.

US Leads Global Crypto Investment Flows; Macro Factors Cited

Regionally, the United States took the lead with $840 million in inflows. Germany follows with $44.5 million, and Australia contributes $10.2 million.

Meanwhile, Canada and Hong Kong posted modest outflows of $8 million and $4.3 million, respectively.

CoinShares attributes the sustained inflows to macroeconomic factors. These include a rise in global M2 money supply and increasing stagflation concerns in the U.S., rendering digital assets more appealing as alternative stores of value.

Furthermore, several U.S. states have recently approved Bitcoin as a strategic reserve asset, adding to institutional confidence in the sector. As such, several institutions are now seeking avenues to gain exposure to BTC.