Digital asset investment products saw record inflows of $2.45 billion, pushing total assets under management to $67 billion, with Bitcoin dominating, benefiting big players like Avalanche, Polygon and Chainlink.
Digital asset investment products saw record inflows last week, totaling $2.45 billion according to the latest report from CoinShares Research. This massive inflow, combined with recent price increases, pushed total assets under management (AuM) to $67 billion, the highest level since December 2021.
The United States accounted for 99% of total inflows of $2.4 billion. This represents a large acceleration in net inflows broadly spread across different providers, signaling growing interest in spot-based ETFs. Meanwhile, outflows from incumbents have declined dramatically.
Bitcoin dominated inflows, taking over 99% of the total. Some investors did take advantage of the opportunity to add to short bitcoin positions, which saw an inflow of $5.8 million. Ethereum also benefited, seeing inflows of $21 million. The recent downturn affected Solana, which saw outflows of $1.6 million.
Other big beneficiaries included Avalanche, Chainlink, and Polygon, which saw inflows of $1 million, $0.9 million, and $0.9 million, respectively. All three have consistently drawn weekly streams so far this year.
However, investors in blockchain equity ETFs took profits, recording outflows of $167 million. This could indicate concerns about high valuations in the sector.
“The record inflows are an extremely positive sign for the digital asset industry,” said CoinDesk Markets analyst Brian Jones. “As adoption grows, more institutional investors are clearly comfortable with crypto assets. The market is rewarding their vote of confidence.”
Regions outside the US saw modest activity. Germany and Switzerland reported inflows of $13 million and $1 million, respectively. Sweden is outside it, recording outflows of $26 million.
Overall, industry observers seem optimistic that momentum will continue to build behind digital asset funds. As the asset class matures and regulatory guidance emerges, mainstream adoption is expected to accelerate.
“There is still huge potential for growth given the small share of total global assets invested in crypto so far,” noted Jones. “If current trends continue, we could easily see the $100 billion AuM milestone reached in 2022.”
For now, digital asset funds look poised to continue climbing to new highs, fueled by growing institutional demand. But as always with such a volatile sector, investors should be prepared for setbacks along the way.
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