As a seasoned crypto investor with several years of experience under my belt, I’ve seen my fair share of market fluctuations and trends. The recent surge in investment inflows into digital asset products, totaling $3.2 billion over the past three weeks, is an exciting development that I’ve been closely monitoring.


Last week, there was a significant increase in investment towards digital asset products, amounting to $1.35 billion. Over the past three weeks, this trend continued, resulting in a total inflow of approximately $3.2 billion.

The trading volume for Exchange Traded Products (ETPs) experienced a notable rise, amounting to $12.9 billion, which represents a 45% weekly enhancement. Nevertheless, this figure only represented approximately 22% of the total crypto market trading volumes, marking a smaller-than-normal contribution.

Bitcoin Sees Inflows Amid Strong Market Sentiment

Based on the most recent issue of CoinShares’ Digital Asset Fund Flows Weekly Report, there were approximately $1.27 billion worth of investments made in Bitcoin during the past week.

As an analyst, I’ve observed a notable contrast in investment flows between short-bitcoin Exchange Traded Products (ETPs) and other bitcoin-related instruments. Specifically, these short-bitcoin ETPs experienced outflows amounting to $1.9 million during the recent period, adding up to a total of $44 million since March. This trend indicates that investors are becoming less concerned about bitcoin’s price direction and are increasingly moving away from bearish positions on this cryptocurrency asset.

Beginning in March, there have been a total withdrawal of funds amounting to $44 million. This represents nearly two-thirds of the current assets under management, or 56%. The asset manager noted that this trend underscores the optimistic market response following the halving event in April.

Last week brought about a more optimistic perspective for Ethereum, as it attracted $45 million in investments, making it the leading altcoin so far this year with a total of $103 million in inflows. This figure surpasses Solana’s $71 million and the $9.6 million it gained last week. Litecoin was the only other altcoin to experience significant inflows during this period, with a total of $2.2 million.

Based on my extensive experience in the cryptocurrency market, I have observed that Chainlink led the way in terms of inflows last week with a significant amount of $0.7 million. XRP came in second place with $0.5 million, while Cardano followed closely behind with $0.4 million. These figures speak to the growing interest and investment in these digital assets.

In contrast, last week saw a significant withdrawal of $8.5 million from blockchain-related equities, even as the majority of ETFs surpassed global equity index performances.

Regional Investment Trends

Last week, the investment landscape was less varied than it is now. The US and Switzerland led the way with substantial investments of $1.3 billion and $66 million, respectively. In comparison, Canada and Australia experienced more modest inflows of $7.8 million and $3.8 million, respectively.

During this period, Germany had the highest net outflow with a total of $5.2 million, while Hong Kong and Brazil experienced relatively small outflows worth $1.9 million and $1.7 million respectively. Sweden also reported modest outflows amounting to $0.6 million.

Read More

2024-07-23 01:22