As a seasoned crypto investor with a few bear market cycles under my belt, I’ve learned that every downturn comes with its unique opportunities. The recent price drop across the board has been disheartening for many, but as an investor, I see it as a chance to buy at discounted prices and add to my portfolio.

Over the past month, the prices of cryptocurrencies have taken a downturn, causing unease among investors and resulting in significant liquidations. Notably, bitcoin‘s price plummeting to levels not seen for months has enticed some investors to seize the opportunity and buy at a discounted price, as well as invest in other cryptos. This has led to an inflow of $441 million into crypto-related products.

Bitcoin-related investments brought in a total of $398 million during that period, accounting for approximately 90% of the crypto market’s inflows. US Bitcoins exchange-traded funds (ETFs) reported an impressive net intake of $294.9 million on July 8, representing the largest inflows since late June. Previously, these ETFs had recorded inflows amounting to $217.78 million on June 6.

As a researcher, I’ve analyzed the latest data on institutional investment flows into Bitcoin Exchange-Traded Funds (ETFs) in the US market. Among these funds, Blackrock’s IBIT witnessed the most significant inflows, with approximately $180 million. Fidelity’s FBTC followed closely, attracting $61.54 million. Grayscale’s GBTC, which is often associated with net outflows when other ETFs experience inflows, reported $25.08 million in net inflows during this period. Bitwise’s BITB saw a moderate increase of around $11.05 million. Ark Invest and 21Share’s ARKB observed relatively small net inflows, amounting to $8.44 million. Notably, other US-based Bitcoin ETFs did not record any notable net inflows or outflows during the same time frame.

As an analyst, I’ve observed that investors have been actively purchasing during the market downturn in June, as depicted by the inflows. Despite the crypto market going through turbulence, these buyers have maintained their bullish stance. The primary drivers of this selling pressure were the Mt. Gox repayments and German government sell-offs. Consequently, a significant number of bitcoin holders felt compelled to liquidate their assets in response to this increased supply on the market.

As a crypto investor, I’ve noticed an intriguing trend mentioned in the latest CoinShares report. Investors are actively seizing opportunities by purchasing assets at discounted prices, with the expectation that their value will surge. Bitcoin, specifically, drew in a significant inflow of US$398 million. However, it’s noteworthy that 10% of the total inflows were allocated to alternatives, suggesting a broader investment strategy. In simpler terms, I’m seeing more investors diversifying their crypto portfolio beyond just Bitcoin, as they seek potential gains in altcoins as well.

With respect to altcoins, last week saw Solana stand out with USD $16 million in investments, adding up to a total of USD $57 million in inflows for the year so far. This makes Solana the top-performing altcoin in terms of investment flow. Ethereum has experienced USD $10 million in inflows recently, but it’s currently the only ETP (Exchange Traded Product) that has seen net outflows throughout the year to date.


Read More

2024-07-10 17:23