Bitcoin Back in the Lead, Digital Asset Markets See Major Inflows

Bitcoin Back in the Lead, Digital Asset Markets See Major Inflows

Apr 01 Tech Standard

The digital asset market experienced a significant turnaround last week, with a surge of over $800 million according to a report by CoinShares. This positive trend marks a sharp reversal from the previous week's near $1 billion outflow.

Bitcoin spearheaded this market shift, attracting a substantial $865 million in net flow. This influx was driven by investments in newly launched exchange-traded funds (ETFs) in the United States. The combined inflows into BlackRock's IBIT, Fidelity's FBTC, and Ark Invest's 21Shares ARKB totaled a staggering $1.53 billion. However, Grayscale's GBTC continues to see outflows, with a record $960 million leaving the fund last week. This brings the year-to-date outflow from GBTC to a hefty $14.7 billion.

The geographical distribution of these flows highlights the growing dominance of the United States in the digital asset market. The introduction of spot Bitcoin ETFs has attracted significant investment, with the US pulling in $897 million last week and a total of $5.7 billion for the month. In contrast, other regions like Brazil and Australia saw more modest inflows of $2.9 million and $1.5 million respectively.

While the US and some South American countries are embracing crypto, Canada and several European nations are showing a more cautious stance. Countries like Germany, Switzerland, and Sweden reported outflows ranging from $2.4 million to $20.3 million, aligning with their negative monthly performance trends.

While Bitcoin reigned supreme, other cryptocurrencies saw mixed results. Ethereum continued its streak of outflows, with another $19 million leaving the market. However, several altcoins like Solana, Litecoin, XRP, Cardano, and Polkadot experienced positive inflows. Solana led the pack with $6.1 million, and XRP attracted a noteworthy $3.8 million despite the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC).

The return of optimism in the market is further reflected by the $2 million outflow from short Bitcoin products. As Bitcoin steadied around the $70,000 mark last week, investors appear to be regaining confidence in the digital asset space.


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