During the week ending Feb. 2, digital asset investment products experienced a significant increase in inflows, surpassing $700 million. This marks a reversal from the previous week, which saw outflows. The surge in inflows can be attributed to a surge of investors flocking to Bitcoin (BTC) products in the United States, according to CoinShares, an alternative asset manager.
The global digital asset product market witnessed a total of $708 million in inflows, with products listed in the United States accounting for $720 million of that amount. The majority of the inflows, standing at $703 million, were directed towards Bitcoin products, including the newly launched spot Bitcoin ETFs.
The influx of funds follows a week of outflows totaling $499.7 million across various digital asset investment products.
In terms of specific assets, the newly issued spot exchange-traded funds (ETFs) in the United States attracted $1.7 billion in inflows over the week, bringing the total since their launch to $7.7 billion. CoinShares analyst James Butterfill also noted a slowdown in outflows from the Grayscale Bitcoin Trust.
While the Grayscale Bitcoin Trust (GBTC) ETF sold off $926.7 million worth of BTC, and ProShares sold $108.9 million, these outflows were offset by inflows into iShares (BlackRock) and Fidelity ETFs, which added $1.6 billion combined.
The price of BTC suffered a decline last week due to indications that the U.S. Federal Reserve may maintain high interest rates in the foreseeable future.
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According to CoinShares data, Solana-focused ETPs outperformed other altcoins, attracting $13 million in inflows, compared to Ethereum’s $6.4 million and Avalanche’s $1.3 million. Ethereum experienced an outflow of $6.4 million.
Nationally, Canadian crypto ETPs experienced the largest outflow, with $31.3 million. Sweden-listed products came in second with $8.2 million in outflows, continuing the trend from the previous week. However, Germany, Switzerland, and the United States saw a reversal in their flows. Switzerland, in particular, witnessed a significant turnaround, with $59.8 million leaving two weeks ago and $20.9 million coming in last week.
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