Digital asset investment products saw their second lowest weekly inflows over the past eight weeks, totaling $270 million, according to the latest Fund Flows Report from CoinShares. This brings the total inflow since the start of the year to $37.3 billion.
James Butterfill, head of research at CoinShares, pointed out an unusual contrast in flows between different assets within the class. He noted that the minimal influx was partly due to the impact of newly launched options on products.
Despite their high initial volumes, US ETF options did not lead to a comparable increase in ETP volumes, which rose from $34 billion the previous week to $22 billion.
Ethereum, XRP outperform Bitcoin.
While Bitcoin has been the market’s best performer over the past year, large-cap alternative digital currencies like Ethereum and XRP have outperformed the flagship digital asset in the past week.
According to the CoinShares report, Bitcoin faced its first significant outflow since early September, with an outflow of $457 million. This outing likely reflects profit-taking amid Bitcoin’s recent rally toward $100,000.
In contrast, Ethereum saw a strong recovery, attracting $634 million in inflows. This brought its year-to-date inflows to $2.2 billion, surpassing the $2 billion received in 2021.
XRP also saw a record inflow of $95 million, driven by growing optimism around the asset and expectations over the potential launch of an XRP ETF in the United States. Notably, the price of XRP hit a seven-year high after surpassing $2, and its market capitalization reached a new high of over $150 billion.
The United States and Hong Kong lead the flows.
Regionally, the United States leads with $266 million in inflows, followed by Germany with $12.3 million. Switzerland and Canada experienced small capital outflows totaling $26 million and $10 million, respectively.
In Hong Kong, crypto ETPs saw notable inflows of $39 million, driven by the strong performance of Bitcoin ETFs.
According to data from SoSo Value, Hong Kong’s three Bitcoin spot ETFs are approaching $500 million in net assets. The ChinaAMC Bitcoin ETF leads with $277.48 million, followed by the Bosera Hashkey Bitcoin ETF with $153 million. The Harvest Bitcoin Spot ETF holds approximately $40 million in assets.
