Digital asset investment products experience significant inflows, led by Bitcoin, while Ethereum struggles to capitalize on market sentiment.
Key Points
- Digital asset investment products see $136 million inflows in the past week, offsetting previous outflows.
- Bitcoin remains the top choice for investors with $133 million inflows, while short-Bitcoin sees outflows for the 11th consecutive week.
- Trade volume for digital asset investment products declines to $1 billion, influenced by seasonal impacts.
- Ethereum receives $2.9 million inflows but fails to capitalize on market sentiment, with Bitcoin leading in asset under management (AuM) growth.
In the latest update from CoinShares, it has been reported that digital asset investment products have experienced significant inflows of $136 million within the past week. This surge marks the third consecutive week of inflows, totaling $470 million, effectively offsetting the outflows observed in the preceding nine weeks.
Bitcoin is in the midst of the largest inflow and supply drop in history, dropping 84% of supply since May 2021
Bitcoin reserves on exchanges have dropped 30% since March 2020, setting another record for duration and depth
This is all amid a significant uptick in institutional… pic.twitter.com/ERG4aLAttu
— Jan (@cryptolife74) July 5, 2023
Bitcoin Dominates the Market
Bitcoin continues to be the primary focus for investors, with inflows totaling $133 million just last week. This trend highlights a strong preference for Bitcoin over other alternative cryptocurrencies or altcoins. On the other hand, short-Bitcoin observed outflows of $1.8 million, marking its 11th consecutive week of outflows.
Despite the overall upward trend in digital asset investment products, trade volume has seen a decline. Investment goods amounted to $1 billion in the previous week, which is significantly lower than the average of $2.5 billion observed over the preceding two weeks. This decline in volume is likely influenced by seasonal impacts, as lower volumes are typically observed during the months of July and August.
Ethereum Reaches $2.9 Million Inflows, But Fails to Capitalize on Market Sentiment
Ethereum, another significant player in the digital asset market, experienced inflows of $2.9 million last week. However, despite increased market sentiment, Ethereum has only captured a small portion of this positive momentum. Inflows during the past three weeks account for just 0.2% of total assets under management (AuM), in comparison to Bitcoin’s 1.9%. Furthermore, Ethereum continues to face negative net flows for the year, with outflows totaling $63 million.
End Note
In addition to Bitcoin and Ethereum, other altcoins such as Solana, XRP, Polygon, Litecoin, and Aave have also witnessed inflows. However, Cosmos and Cardano experienced minor outflows during this period.
A notable development in the market is the flow of investments towards blockchain equities, which recorded the largest inflows in a year, amounting to $15 million.
