For the third consecutive week, digital asset investment products have attracted significant inflows, totaling $1.05 billion, contributing to a record-breaking year-to-date cumulative flow of $14.9 billion. The latest data from CoinShares’ Digital Asset Fund Flows Weekly Report highlights a surge in prices driving total digital asset exchange-traded products (ETPs) to $98.5 billion, with weekly ETP trading volumes increasing by 28% to $13.6 billion.

The majority of inflows were directed towards Bitcoin ETPs, attracting $1.01 billion, while short-BTC products experienced outflows of $4.3 million, indicating a generally positive sentiment despite recent price increases. This shift in sentiment is likely influenced by investors interpreting the FOMC minutes and recent macro data as mildly dovish. Investment products offering exposure to Ethereum saw inflows of $36 million, the highest since March, largely driven by early reactions to the approval of spot Ether ETFs in the United States.

Bullish sentiment extended to altcoins, with Solana attracting $8 million in inflows last week. Litecoin also witnessed inflows of $2.8 million, followed by Chainlink and XRP with $0.6 million and $0.4 million, respectively. However, Cardano observed weekly outflows of $1.2 million. Geographically, the majority of inflows were concentrated in the United States, with $1.03 billion in inflows over the past week. Notably, Grayscale saw a significant reduction in outflows to just $15 million for the week. Germany and Switzerland also experienced inflows of $48 million and $30 million, respectively.

Despite the initial enthusiasm surrounding the launch of spot Bitcoin ETFs in Hong Kong, disappointing outflows of $29 million were recorded last week. The continued influx of funds into digital asset investment products, particularly Bitcoin ETPs, reflects a positive sentiment among investors, driven by favorable market conditions and regulatory developments. The diverse inflows across various cryptocurrencies indicate a growing interest in digital assets and a willingness to explore alternative investment opportunities within the evolving cryptocurrency landscape.