Digital Asset Fund Revenue Hits $78 Million As Trading Volumes Grow To $1.13 Billion: Coinshares

Digital asset investment products have experienced a surge in popularity over the past 14 days or so after 10 weeks of heavy drops.

The reports indicate an upward trend in digital asset fund flows, with $78 million inflows last week, more than double the previous period, when revenues topped $25 million.

Europe and Bitcoin won big in earnings

As CoinShares data rightly indicates, Bitcoin has emerged as the dominant user of the time. According to statistics, Bitcoin Digital Asset Funds saw an inflow of around $43 million in a week.

However, that hasn't stopped some investors from capitalizing on Bitcoin's recent price strength to add to their short-Bitcoin positions, which attracted $1.2 million in outflows.

Interestingly, the progress they made was not universal. There was a sharp division by region, with Europe accounting for 90 percent of the revenue, while the United States and Canada combined for just $9 million.

The last fortnight's increase in revenue was linked to another 37% increase in trading volume, with the trading volume of exchange-traded products rising to $1.13 billion, indicating strong sentiment in the digital assets market.

Prior to the two-week entry period, there was a 10-week drought in which approximately $450 million was withdrawn from the market. Two very low weekly earnings were recorded during these ten weeks.

According to Bloomberg and Coinshares analysis data, this year's peak inflows were reported in the 10th week around mid-March at around $260 million. Conversely, this year's peak revenue was around $250 million in late June or early July.

As Solana thrives, older Ethereum ETFs fail to impress.

Six newly launched Ethereum-focused ETFs in the US have failed to generate the expected enthusiasm. Despite high demand, these ETFs managed to pull in less than $10 million in their first week. This is a weak reaction compared to the launch of similar products related to BTC, which attracted more than a billion in a week.

According to Coinshares blog analyst James Butterfield, this tepid response reflects “weak investor appetite for digital assets at the moment and is unfairly compared to the October 2021 Bitcoin Futures ETF, as it was generally too high for the asset class.”

As Ethereum saw a waning response, Solana became somewhat popular, earning around $24 million per week. This is the largest since March 2022, according to Coinshares reports.

With Ethereum's poor performance, analysts suggest that the performance of Solanas product indicates a possible shift in the crypto community, with SOL becoming the preferred altcoin.