CoinShares Weekly Report: Digital Asset Funds See $1.4 Billion Inflows in a Single Week, Reaching a New High Since January

Last week, global digital asset investment products recorded $1.4 billion in inflows, marking the highest weekly inflow since January and achieving positive fund growth for the third consecutive week.

Currently, the total assets under management (AUM) of global digital asset funds have reached $155 billion, with weekly inflows accounting for 0.91% of AUM, the highest weekly inflow ratio so far this year.

Analysis suggests that the key reason for the continued rebound in market risk appetite last week was the progress in delaying negotiations for a ceasefire between the U.S. and Iran. Influenced by this event, Bitcoin's price once hit a new high since the sharp decline in February, further reinforcing this trend.

Despite the March CPI year-over-year increase reaching 3.3%, core CPI remained at a moderate 2.6%, indicating that inflationary pressure is mainly supply-driven rather than a widespread inflation characteristic.

By country/region, the U.S. market led with $1.5 billion in weekly inflows, dominating the scene. Germany and Canada followed, with weekly inflows of $28 million and $8.3 million, respectively.

Meanwhile, the Swiss market experienced a significant outflow of $138 million in a single week, the largest weekly outflow since November last year, diverging sharply from the overall risk appetite sentiment.

In terms of asset classes, Bitcoin continued to lead the market last week with nearly $1.12B in inflows, bringing its total inflow since the beginning of the year to about $3.1 billion. Conversely, short Bitcoin products saw only $1.4 million in inflows, indicating that hedging demand still exists but on a limited scale.

Ethereum saw continued recovery with $328 million in inflows, marking its best weekly performance since January, with total inflows of $197M so far this year. In contrast, XRP and Solana experienced outflows of $56 million and $2.3 million, respectively.

In summary, three consecutive weeks of net inflows into global digital asset investment products, combined with positive expectations for U.S.-Iran ceasefire negotiations, have jointly driven a rebound in risk fund preferences, indicating that capital is flowing back into the cryptocurrency market.

Although market sentiment appears to be emerging from the gloom following the February crash, whether the upward trend can continue still depends on the actual progress of the U.S.-Iran ceasefire negotiations this week.

#Digital Asset Fund Weekly Report