On Feb. 6, European cryptocurrency investment firm CoinShares released its Digital Asset Fund Flows Report, revealing that investors are showing strong interest in digital asset investment products, with inflows totaling $76 million over the past week, which represents the fourth straight week of inflows .
The report points to a shift in investor sentiment heading into 2023, with year-to-date inflows now at $230 million. That growth has resulted in an increase in total assets under management (AUM), which now stands at $30.3 billion — the highest since mid-August 2022.
Investors are primarily focused on Bitcoin (BTC) with weekly inflows of $69 million, accounting for 90% of the total weekly inflows. This investment growth is primarily coming from the United States, Canada, and Germany with weekly inflows of $38 million, $25 million, and $24 million, respectively.
However, opinions differ on the sustainability of this growth, with short bitcoin inflows totaling $8.2 million over the same period. Although relatively small compared to long Bitcoin inflows, these inflows are up 26% of total AUM over the past three weeks. Despite this, year-to-date short bitcoin trading has failed to attract significant interest, with total short bitcoin AUM down 9.2%.
Altcoins also saw some minor inflows, with investment products Solana (SOL), Cardano (ADA), and Polygon (MATIC) all seeing modest declines. Despite the increasing clarity surrounding the decline, Ether (ETH) producers received just $700,000 in inflows.
Related: Digital asset investment products see highest inflows since July 2022: report
Overall, positive inflows into digital asset investment products underscore growing investor confidence in the market. Altcoin activity also suggests that the digital asset market remains diverse and constantly evolving.
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