U.S. digital asset inflows reportedly surged by $901 million last week, pushing 2023’s total inflows to a record-breaking $27 billion — nearly triple the 2021 record. This is amid rising political interest and speculation in Bitcoin investments.
According to a blog post on CoinShares Research, this movement marks a substantial increase from previous records and underscores the strengthening presence of digital assets in finance.
The United States led the charge, contributing $906 million in inflows. Meanwhile, Germany and Switzerland saw moderate increases with inflows of $14.7 million and $9.2 million, respectively. In contrast, Canada, Brazil, and Hong Kong reported outflows of $10.1 million, $3.6 million, and $2.7 million each.
Politics Drives Bitcoin Boom as Ethereum Falters
Bitcoin remained the primary beneficiary of the digital inflows, drawing in an impressive $920 million. Industry analysts attributed this spike to U.S. political factors, particularly speculations tied to Republican poll gains, which have driven investor optimism around the leading cryptocurrency.
Unlike typical patterns, there were minimal inflows into short-Bitcoin positions, which saw slight outflows of $1.3 million. This may indicate that investors are increasingly placing long bets on Bitcoin’s performance rather than hedging against potential downturns.
Various experts note that Bitcoin’s decentralized nature, secure blockchain-based transactions, and potential for high returns are key drivers of its growing global adoption. Regional case studies reveal that adoption is particularly strong in emerging markets, areas experiencing economic instability, cross-border remittance hubs, and underserved populations. Additionally, government regulations play a significant role by either facilitating or hindering uptake.
While the attention was up on Bitcoin, Ethereum reportedly experienced the largest outflows of any digital asset, losing $35 million over the same period. Solana, meanwhile, bucked the trend among altcoins, posting inflows of $10.8 million, the second-highest after Bitcoin.
Blockchain equities also saw sustained growth, with inflows reaching $12.2 million for the third consecutive week. This could indicate that investor interest is broadening beyond cryptocurrency into the wider digital asset ecosystem. The report also noted that last week’s $901 million inflows accounted for 12% of total assets under management (AUM) for digital assets, marking the fourth-largest monthly inflow on record.
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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice.
The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
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