Digital assets investment funds recorded $151 million in inflows in the first week of 2024 as institutional investors drive adoption following anticipation of a spot Bitcoin (BTC) ETF approval by the Securities and Exchange Commission (SEC).
A new CoinShares Digital Asset Fund Flow report shows that the market continues with bullish sentiments as asset prices surged in the early days of the year before being faced with a slight market correction.
According to the report, crypto investment products notched $151 million in gains in the past seven days bringing the total inflows to $2.3 billion since the landmark Grayscale victory over the SEC.
The ETF optimism that dominated industry narratives persists with multiple developments springing around stakeholders as firms make final adjustments to their filings, onboard new partners, and renew their bullish stance.
Predominantly, the Matrixport report towards the end of the year projecting a $50,000 Bitcoin price at the end of January ignited investors for a potential uphill run. As the price of Bitcoin moved past $45,000, institutional products around the market leader and altcoins posted new entrants.
Bitcoin and Ethereum’s products surge
As expected, Bitcoin products attracted a majority of inflows totaling $113 million. Short Bitcoin however posted outflows of $1 million in the last seven days. Equities also started the year on a high with $24 million inflows.
On the altcoin front, Ethereum (ETH) continued its good run in Q4 2023 with $30 million inflows as the price of the asset moved past $2,250. Wealth managers continue to back Ethereum based on the staking feature which several investors eye profits.
SOL tanks, ADA gains
Solana (SOL) which is community dubbed the ETH killer and an institutional investor favorite for most part of 2023 posted consecutive gains and started the new year in the red zone. The asset’s products recorded $5 million in outflows in the last seven days after its price slid 10.35% in the same period.
Solana went on a surge in December with increased transactions around the BONK token and sales numbers recorded in its flagship SAGA smartphone. The uphill climb of the asset which saw it topple BNB as the fourth most valued asset lost momentum with the asset trading at $94 at press time.
Cardano (ADA) another community dubbed ETH killer notched inflows of $4 million while Ripple (XRP) and Avalanche (AVAX) notched $1 million and $2 million in inflows respectively amid both assets recording losses in the wider market due to sell-off.
Multi-asset saw gains of $5 million bringing its assets under management (AUM) to $3.2 billion while Bitcoin’s AUM stands at $37.8 billion. The total market AUM holds still above $52 billion as decentralized finance (DeFi) figures increase.
Geographically, the United States led with 55% of inflows while Germany and Switzerland recorded. 21% and 17% respectively.
The post Cryptocurrency Institutional Funds Record $151 Million Inflows in First Week of 2024 appeared first on Cryptonews.
