Crypto Investment Surges with $78 Million Inflows
CoinShares’ latest investment report reveals a surge of investment into the crypto market, with a total of $78 million pouring into the sector. This marks the second consecutive week of positive inflows, with a four-fold increase from the previous week’s $21 million. It is also the largest week of inflows since July. Bitcoin was the main beneficiary, receiving inflows totaling $43 million. However, some investors took advantage of recent price strength to add to short-Bitcoin positions, resulting in $1.2 million in inflows for those positions.
Robust Increase in Trading Volumes
Trading volumes for crypto-related exchange-traded products (ETPs) saw a significant increase of 37%, reaching $1.13 billion. Bitcoin trading volumes on listed cryptocurrency exchanges also experienced a 16% uptick.
Regional Differences in Sentiment
The report highlights a stark divergence in sentiment across regions. Europe accounted for 90% of the total inflows, while the United States and Canada collectively received only $9 million. CoinShares attributes this divergence to the adverse regulatory climate in the U.S., which was also observed last month.
Ethereum ETFs Receive Modest Interest
The debut of Ethereum futures-based exchange-traded funds (ETFs) in the U.S. garnered modest interest from investors, with less than $10 million in inflows during the first week. This contrasts with the launch of Bitcoin futures-based ETFs in October 2021, which attracted $1 billion in the same timeframe. The report suggests that this difference is due to poor investor appetite for digital assets currently.
Solana Sees Significant Inflows
In contrast to Ethereum ETFs, Solana experienced a substantial surge in inflows, recording its largest weekly inflow of $23.9 million since March 2022. The report identifies Solana as the “preferred altcoin” and highlights its recent achievement of reaching the year’s all-time high total value locked in the DeFi space, surpassing $338 million.
Hot Take: Crypto Market Experiences Strong Investment Inflows
The crypto market has seen a significant influx of investment, with $78 million pouring into the sector. This surge follows two consecutive weeks of positive inflows and marks the largest week of inflows since July. Bitcoin remains the main beneficiary, receiving the majority of the investments. However, Ethereum ETFs received modest interest compared to Bitcoin futures-based ETFs. On the other hand, Solana experienced a substantial surge in inflows and solidified its position as the preferred altcoin. These developments highlight the continued growth and potential of cryptocurrencies in the investment landscape.
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