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Positive news on the policy front increased appeal of digital asset investment products as bitcoin funds saw net inflows of $226 million during last week, according to digital asset manager CoinShares.

Inflows during the week, however, pales in comparison to $1.31 billion inflows that digital asset investment products had witnessed for the week ended 22 January 2021.

Overall, crypto funds saw inflows of $226 million as ether saw minor outflows totaling $14 million last week. The world’s second-biggest crypto currency continued to lose market share to bitcoin, having fallen 1% to 24% of assets under management (AUM) over the last week alone.

The crypto funds have now witnessed positive flows for eight straight weeks, taking the total inflows at $638 million for the period.

“Bitcoin saw inflows totaling $225 million (last week), comprising a significant majority of the total. We believe the turnaround in sentiment towards bitcoin is due to constructive statements from SEC chair Gary Gensler, potentially allowing a Bitcoin ETF in the US," CoinShares wrote in a report.

The bitcoin market last week continued to show strength, with prices trading within a low at $53,657, and a high of $56,250.

On Tuesday, BTC was trading 2.4% higher at $57,335, Coingecko, a digital currency price and information data platform.

The CoinShares report also noted that it was a mixed picture in other altcoins with recent favorites Solana ($12.5 million) and Cardano ($3 million) continuing to see inflows, suggesting the focus hasn’t entirely switched to Bitcoin.

However, other altcoins such as Polkadot, Ripple and Litecoin didn’t fare so well with outflows of $2.1 million, $0.6 million and $0.2 million, respectively.

In terms of crypto fund providers, the world’s biggest digital asset manager, Grayscale, remained steady with total assets under management (AUM) of $48.41 billion, followed by CoinShares at $5.37 billion and 3iQ with an AUM of $2.50 billion.

The total AUM at crypto fund providers is now only 5% short of the all-time high at $67 billion due to the recent positive price action.

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