Digital Asset Inflows Reach Record High Since 2022

Investors are once again showing interest in digital assets, with Bitcoin leading the way as it saw inflows of $128 million. It marks a significant turnaround following six weeks of outflows that totaled $408 million, making it the largest inflow since July 2022.

According to a recent CoinShares Blog post, some investors are starting to view Bitcoin as a safe haven for the first time, while others remain cautious as short-Bitcoin also saw inflows of $31 million. Despite this, Bitcoin remains the investment product with the most inflows this year so far.

The inflows, which came relatively late compared to the broader crypto market, are believed to be due to increasing fears amongst investors for stability in the traditional finance sector. The inflows came from many countries, including the US, Germany, and Canada, with inflows of $69 million, $58 million, and $26 million, respectively.

Solana, Polygon, and XRP were among the altcoins that received inflows totaling $4.8 million, $1.9 million, and $1.2 million, respectively. In contrast, Ethereum experienced outflows of $5.2 million for the third consecutive week, likely due to investor concerns regarding the upcoming Shanghai upgrade scheduled for April 12th.

Despite Ethereum’s recent performance, the inflows into other altcoins indicate a general improvement in sentiment within the asset class. However, investors are seeking to diversify their portfolios and capitalize on potential gains in the digital asset space.

Growing Bitcoin Ownership In Emerging Markets

Bitcoin ownership is growing rapidly and is not just a Western phenomenon, according to a recent report by CoinShares. The study reviewed 22 publicly available research studies on Bitcoin ownership and adoption, revealing that ownership is concentrated in emerging and frontier markets. 

The data shows that an estimated 260 million people globally owned Bitcoin in 2022, with a compound annual adoption growth rate of 146% between 2016 and 2022 and 23% between 2018 and 2022. 

Most Bitcoin owners are under 45 years old and use it as a store of value or for speculation. The report also notes that ownership is likely higher than reported, with market cycles playing a role in adoption.

A typical Bitcoin owner is usually male and under 45, with Germany showing the highest gender skew of 68-32%. However, there is a trend towards greater diversity in both male-female distribution and age brackets in the US and Canada. 

The researchers suggest standardizing surveys across populations and time could provide better source material for ongoing ownership research. The demographic data available is fragmented and suffers from a lack of metrics standardization and sampling bias.

Related Reading | Coinbase L2 Network Eyes Inflation-Pegged Stablecoins