**Digital Assets Gain $66M in 4th Consecutive Week as Institutional Interest Builds**
Digital assets markets have seen a fourth consecutive week of inflows from institutional investors, according to data from CoinShares. This trend can be attributed in part to the growing expectation for the approval of a spot Bitcoin Exchange-Traded Fund (ETF) in the United States. The total value of assets under management (AuM) has surged to $33 billion, reflecting a 15% increase since the beginning of September. However, investors are approaching the market with more caution compared to their reaction to BlackRock’s announcement in June.
The recent influx of funds, while potentially connected to the potential introduction of a spot Bitcoin ETF in the US, is relatively modest compared to the inflows observed in June.
According to CoinShares, a significant portion of the inflows in the previous week, amounting to $55.3 million or 84% of the total, were directed towards investment products related to Bitcoin. This brings the cumulative inflows for Bitcoin products to $315 million so far this year. Solana, an alternative cryptocurrency, also received an infusion of $15.5 million last week, bringing its total inflow for the year to $74 million.
In contrast, Ethereum faced a challenging week with a significant outflow of $7.4 million. It was the only altcoin to experience a decline in financial performance during this period. Other altcoins such as Cardano (ADA) and Binance Coin (BNB) saw smaller inflows of $0.1 million and $0.2 million, respectively.
James Butterfill, the Head of Research at CoinShares, noted that the recent inflows are not as substantial as those seen earlier this year following BlackRock’s announcement about a Bitcoin ETF application.
“While the most recent inflows are likely linked to excitement over a spot Bitcoin ETF launch in the U.S., they are relatively low in comparison to the initial inflows following BlackRock’s announcement in June,” Butterfill said.
The market for digital assets is rapidly expanding, with increasing numbers of individuals investing in cryptocurrencies and other digital investments. However, some investors remain cautious and are not rushing into the market. It remains to be seen whether this cautious approach will persist or if new trends and opportunities will arise in the coming weeks. As the world of finance continues to evolve, close attention must be paid to how these developments unfold.
*Disclaimer: This site’s content should not be considered as investment advice. Investing carries inherent risks, and capital is always at risk. Featured image from Ledger Insights.*
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