The digital asset market experienced significant growth in the week starting January 29th, with global managed digital assets reaching $53 billion. According to asset manager CoinShares, the majority of this increase can be attributed to investments in Bitcoin (BTC).
Capital inflows into the digital asset market surged to $708 million during the week, with $703 million of that flowing into the United States. This compares to a total outflow of $499.7 million in the week ending on January 22nd. BTC accounted for 99% of the total capital inflow into the market during the week starting January 29th, amounting to a total of $703 million, with a minor outflow of $5.3 million from Short Bitcoin.
Inflows into all ETF products amounted to $8.2 billion, a decrease from the $10.6 billion in the previous week. The United States witnessed the largest influx, with $721 million pouring in.
Bitcoin spot ETF funds also saw a total of $1.7 billion inflow, slightly lower than the weekly average of $1.9 billion since their launch on January 11th. Nevertheless, the market is evolving:
Inflows into US Bitcoin ETF funds were offset by outflows from incumbent issuers, with the Grayscale Bitcoin Trust (GBTC) witnessing outflows of $6 billion. However, data indicates that these outflows have significantly decreased.
The ETF Grayscale Bitcoin Trust (GBTC) sold $926.7 million worth of BTC, and ProShares sold $108.9 million worth of BTC, but these outflows were compensated by inflows into BlackRock and Fidelity ETF funds, which added an additional $1.6 billion.