Crypto Funds See Third Consecutive Week of Inflows Led by Bitcoin
Crypto funds have experienced a third straight week of net inflows, with Bitcoin leading the way. According to CoinShares, Bitcoin attracted $16 million in inflows during the last week, bringing its year-to-date inflows to $260 million.
The data does not capture the positive news from Friday that the Securities and Exchange Commission (SEC) did not appeal a court ruling favoring Grayscale Investments’ bid to launch a spot Bitcoin exchange-traded fund (ETF).
Ethereum Struggles Despite ETF Launch
While Solana investment products added $3.7 million in inflows, Ethereum funds saw outflows amounting to $7.4 million. This comes despite the recent launch of futures-based ETFs for Ethereum. James Butterfill, head of research at CoinShares, suggested that ongoing protocol design concerns may be behind this lack of investor interest.
Altcoins Face Challenges
Altcoins had a challenging week, with a combined outflow of $0.84 million. Tezos, Litecoin, and Chainlink experienced outflows of $0.25 million, $0.28 million, and $0.31 million respectively. XRP managed to stand out with modest inflows of $0.42 million, marking the 25th consecutive week of inflows for XRP this year.
Regional Divide in Inflows
A closer look at the inflow data reveals a regional divide. While the United States saw minimal inflows into digital asset investment products, Europe stood out as a performer. European markets welcomed a net inflow of $7 million, with Germany leading the way with an addition of $16.1 million. Canada registered $3.5 million of inflows, while the US reported $2.1 million.
Despite consecutive weekly inflows, trading volumes remain 27% below the average for 2023, indicating cautious investor behavior in a volatile market, according to CoinShares.
Hot Take: Crypto Funds Continue to Attract Investors, but Ethereum Lags Behind
Crypto funds are experiencing consistent inflows, with Bitcoin leading the way. However, Ethereum is struggling to attract investor interest despite the launch of futures-based ETFs. Altcoins also faced challenges, with most experiencing outflows. On a regional level, Europe is outperforming the United States in terms of net inflows into digital asset investment products. Despite these positive trends, caution remains evident among investors as trading volumes remain below average. Overall, crypto funds continue to be an attractive option for investors looking to capitalize on the crypto market.
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