Coinshares has released its latest report on digital asset fund inflows, which was led by head of research James Butterfill. The report reveals a significant increase in digital asset fund inflows, particularly in the U.S. where investor activity has surged to nearly three times higher than the peak in 2021. According to Coinshares' research, digital asset investment products have seen a substantial inflow of $901 million in recent weeks, pushing year-to-date totals to $27 billion, almost tripling the 2021 high.
This surge in activity marks the fourth-largest month for digital asset inflows on record, with the U.S. leading at $906 million. While Germany and Switzerland experienced modest gains, smaller outflows were observed in Canada, Brazil, and Hong Kong, highlighting a diverse global investment landscape. The report emphasizes bitcoin (BTC) as the primary asset driving the surge, with $920 million in inflows.
Butterfill attributes this uptick to increased interest from U.S. investors, likely influenced by political factors, particularly the recent poll gains of the Republican Party. Interestingly, short-bitcoin investment products, which typically balance inflows to BTC, saw minor outflows, deviating from expected patterns. In contrast, Ethereum (ETH) recorded the largest outflows among major digital assets, totaling $35 million, while solana (SOL) and blockchain equities showed positive inflows, adding $10.8 million and $12.2 million, respectively.
Butterfill's analysis suggests that this trend in digital asset investments reflects broader shifts in sentiment driven by political developments in the U.S. The Coinshares report indicates that investors are viewing these assets as a hedge or alternative investment, influenced by ongoing economic and political uncertainties. With inflows reaching 12% of total assets under management this month alone, digital assets continue to solidify their position in global portfolios.