Investment in digital assets hit $117 million in the week ending Jan. 27, the highest since July 2022, with almost all of it going into Bitcoin, according to the Digital Asset Fund Flows report from European cryptocurrency investment company CoinShares.
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- Last week’s rise is still far behind the nearly $400 million weekly investment from July 2022, which was the standout performance last year.
- Total digital assets under management also rose to $28 billion for the week, up 43% from the November 2022 lows, according to the report.
- Investment products trading volume increased 17% compared to the year-to-date average, with $1.3 billion traded on the week.
- Most of the weekly investment came from Germany, which accounted for $46 million, followed by Canada with $30 million, the United States with $26 million, and Switzerland with $23 million.
- Bitcoin accounted for almost all of this investment at $116 million, but $4.4 million also flowed into short Bitcoin positions, which the report says shows some investors are hedging their bets.
- The crypto market is off to a strong start in 2023 after a rocky end to the previous year following the multi-billion dollar crash of Bahamas-based crypto exchange FTX.com. The Bitcoin price rose almost 40% from January 1 to January 27; however, it saw a pullback in Tuesday morning trade in Asia and traded 0.6% lower over the past seven days at $22,866 at 11:30 a.m. in Hong Kong. .
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