Digital Asset Products Record Inflows After Six Weeks of Outflows
According to a market report released by CoinShares, digital asset products have seen inflows of $21 million for the first time in six weeks, signaling a shift in crypto investment products. This comes amidst a bear market that has been impacting asset prices, miner profits, and wider adoption.
The week initially started with traders expecting more losses, but things changed on Friday due to factors such as slight price momentum, institutional movements, and the recent US government funding debacle.
Bitcoin Products Surge While Ethereum Slumps
Last week, Bitcoin (BTC) products recorded inflows of $20 million after a week of losses. Short-Bitcoin products saw outflows of $1.5 million, bringing total outflows since April to $85 million. Ethereum (ETH), on the other hand, experienced outflows of $1.5 million, marking its seventh consecutive week of outflows despite the buzz around an Ethereum exchange-traded fund (ETF).
Solana (SOL), often referred to as the “ETH Killer,” continues to gain traction among institutional investors. It recorded inflows of $5 million, marking its 27th consecutive week of gains this year.
Regional Divergence in Markets
Institutional investors in Europe and Canada recorded inflows of $23 million and $17 million respectively, while the United States saw outflows of $19 million. Europe’s clear regulations have made it a favorable market for crypto investments, while criticisms continue towards the Securities and Exchange Commission’s stifling regulations in the US.
Hot Take: Digital Asset Products See Inflows Amidst Bear Market
Digital asset products have defied expectations by recording inflows of $21 million after six weeks of outflows. Bitcoin products surged, attracting $20 million in inflows, while Ethereum continued its losing streak with outflows of $1.5 million. Solana remained a favorite among institutional investors, with inflows of $5 million. These positive developments come amidst regional divergence in markets, with Europe and Canada experiencing inflows while the US saw outflows. Despite the bear market conditions, this shift in crypto investment products suggests resilience and potential for future growth.
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