Digital asset investment products experienced a significant turnaround in the week ending February 2nd, with over $700 million in inflows, according to CoinShares, an alternative asset manager. This reversal was mainly driven by a surge of investors flocking to Bitcoin (BTC) products in the United States. The global digital asset product market received a total of $708 million in inflows, with $720 million coming from US-listed products. Bitcoin products, including recently launched spot Bitcoin ETFs, accounted for the majority of these inflows at $703 million.
This figure marks a stark contrast to the previous week, which saw outflows totaling $499.7 million across all digital asset investment products. The newly issued spot exchange-traded funds (ETFs) in the United States received $1.7 billion in inflows during the week, bringing the total since 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 of BTC and ProShares sold $108.9 million of BTC, these outflows were offset by inflows into iShares (BlackRock) and Fidelity ETFs, which added $1.6 billion between them.
The BTC price suffered last week as a result of indications that the US Federal Reserve may maintain high interest rates in the foreseeable future.
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. However, there was an outflow of $6.4 million from Ether (ETH).
On a national level, Canadian crypto ETPs experienced the largest outflow, with $31.3 million traded away. Sweden-listed products followed with $8.2 million in outflows, continuing the trend from the previous week. However, there was a reversal of flows in Germany, Switzerland, and the United States. Switzerland, in particular, experienced a dramatic turnaround, with $59.8 million in outflows two weeks ago and $20.9 million in inflows last week.