The market for digital assets has been winning a lot lately, making up for losses from earlier months as a number of assets have reached all-time highs for the year.
According to a recent CoinShares Weekly Asset Flow report, investor confidence has significantly increased over the previous week, continuing the upward trend and pointing to a developing market.
The amount of money that digital asset funds received in total last week was $176 million, marking the ninth consecutive week of weekly inflows. The market is seeing a fresh upswing following many weeks in the red zone as a number of companies wait for the US Securities and Exchange Commission to approve a Bitcoin (BTC) spot ETF. The SEC has rejected prior applications due to worries about market manipulation.
Eight weeks into the big run, the total for this year has risen to $1.32 billion, a figure that some analysts consider good considering the dramatic downturn in the market last year brought on by the collapse of FTX and Terra, which erased billions from the market.
Nevertheless, the amount for this year still lags significantly behind the $10.7 billion and $6.6 billion reported for 2020 and 2021, respectively. 2021 saw the peak of Bitcoin and numerous other cryptocurrencies, which have not been surpassed in more than two years.
Cryptocurrencies soar while BTC leads the rally.
As anticipated, BTC led last week’s statistics, showing $155 million in inflows and a spike in assets under management, while short bitcoin saw $8.5 million in withdrawals.
As of this writing, the price of Bitcoin is $37,735; it has increased 2.5% over the last seven days as bulls aim to fuel a significant run on the strength of recent market gains.
On the altcoin front, inflows were also seen, with gains of $3.3 million and $1.8 million for Ethereum (ETH) and Avalanche (AVAX), respectively. Despite the introduction of many spot Ethereum ETFs, Ethereum has exhibited encouraging signals in recent weeks following several weeks of withdrawals and skepticism.
Conversely, following the announcement of tokenization experiments in collaboration with the network by major institutional investors like JP Morgan, the native token of the Avalanche blockchain, AVAX, surged 22% over the previous seven days.
With inflows of $13.6 million, Solana (SOL) continued to be the altcoin that gained the most, maintaining its position as the preferred alternative among institutional investors. Polygon reported an outflow of $0.86, while Uniswap reported a $0.55 outflow.
Europe trumps the United States.
Geographically speaking, Europe continues to outperform the US as it sets the standard for consistent cryptocurrency regulations after passing the Markets in Crypto Assets (MiCA) regulation.
There were outflows of $19 million from the United States but inflows of $63 million and $35 million from Germany and Switzerland, respectively. With $97.7 million, Canada led the weekly inflows as regulators continued to reshape several market sectors.
ETP shares have also increased recently, with an average increase of 11% above the numbers from the bull market of 2021.