Bitcoin Investments Propel Global Digital Asset Market to $53 Billion
Summary:
The global digital asset market witnessed significant growth for the week starting on January 29, with assets under management surpassing $53 billion, due predominantly to Bitcoin investments. The inflow to the digital asset market was $708 million for the week, with $703 million from the United States. The recently launched Bitcoin spot exchange-traded funds (ETFs) in the U.S. attracted $1.7 billion. Despite outflows of digital assets in countries like Canada and Sweden, the overall market trend reveals robust growth, with Solana blockchain achieving notable inflows.
The digital currency market experienced a surge during the week commencing January 29th, with the worldwide management of digital assets surpassing $53 billion. CoinShares, an alternative asset manager, attributes these gains to substantial Bitcoin investments. The digital currency market received an infusion worth $708 million in that week, of which $703 million was witnessed in the U.S. This figure presents a stark contrast to the previous week's total outflow of $499.7 million. 99% of all market inflows for the week starting January 29th was due to Bitcoin, amassing to $703 million, versus an outflow of $5.3 million from the cryptocurrency.
The inflow into all marketable securities trading on an exchange summed to $8.2 billion, a decrease from the preceding week's $10.6 billion. The United States experienced the most activity, with an inflow of $721 million. This number is favourably compared to the last week's outflow of $408.8 million in the U.S.
For the same week ending on the 29th of January, a total of $1.7 billion flowed into the newly established U.S. Bitcoin spot exchange-traded funds (ETFs) market. This number falls slightly below the average weekly input of $1.9 billion since their first day of business on January 11th. Despite this, the market continues to make progress.
The sell-off of $926.7 million from Grayscale Bitcoin Trust (GBTC) ETF and $108.9 million from ProShares had been counterbalanced by the contributions of iShares (BlackRock) and Fidelity ETFs, contributing $1.6 billion jointly. Over the past week, digital asset investment products had high inflows totalling $708m. The total global assets managed now stand at $53bn. Trade volumes in ETPs dipped to $8.2bn, compared to $10.6bn the week before.
The volatility in Bitcoin price is attributed to the potential decision of the U.S Federal Reserve to uphold high-interest rates. Data from CoinShares reveal the dominance of the Solana blockchain over its competitors after receiving $13 million, surpassing Ethereum’s $6.4 million and Avalanche's $1.3 million. During the same period, Ether (ETH) saw an outflow of $6.4 million.
In the national scene, Canada recorded the largest outflow, with $31.3 million being traded out. Following closely was Sweden, with outflows amounting to $8.2 million. The same countries also experienced outflows the previous week, alongside others. Canada's outflows accelerated while Germany, Switzerland, and the United States witnessed a reversal. Switzerland, in particular, bounced back significantly with an infusion of $20.9 million, a major win following the $59.8 million outflow seen two weeks prior.
Published At
2/6/2024 12:51:30 AM
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