Digital Asset Investment Products See Inflows After 6 Weeks
Last week, digital asset investment products received a total of $21 million in inflows, marking the first time in six weeks that there has been a positive influx of funds. The shift towards inflows came as a surprise, as earlier in the week it seemed like outflows would persist. However, the tide turned on Friday, and several factors contributed to this change.
Bitcoin Leads Inflows, Short-Bitcoin Positions Continue to See Outflows
According to CoinShares’ ‘Digital Asset Fund Flows Weekly Report,’ Bitcoin received the majority of inflows, totaling $20 million last week. On the other hand, short-Bitcoin positions experienced outflows of $1.5 million, continuing a trend that has seen $85 million exiting since April.
Solana Stands Out, Ethereum Sees Outflows
The altcoin market remained relatively quiet, but Solana stood out with $5 million in inflows. This marks its 27th week of positive activity and establishes it as the “most loved altcoin” of the year. In contrast, Ethereum saw outflows for the seventh consecutive week, totaling $1.5 million, solidifying its position as the “least loved altcoin.”
Regional Sentiment Divergence Continues
Regional sentiment divergence remained largely unchanged from the previous week. The United States witnessed outflows of $19 million, while Europe and Canada experienced inflows of $23 million and $17 million respectively.
Low Trading Volumes Despite Price Increase
Despite the recent increase in prices, trading volumes have remained seasonally low both in the investment product market and the broader cryptocurrency market.
Hot Take: Crypto Investment Products Experience Inflows After 6 Weeks
The crypto investment product market saw a positive turn with $21 million in inflows last week, breaking a six-week streak of outflows. Bitcoin led the way with the majority of inflows, while short-Bitcoin positions continued to see outflows. Solana remained popular among investors, while Ethereum faced ongoing outflows. Regional sentiment divergence persisted, with the United States experiencing outflows while Europe and Canada saw inflows. Despite price increases, trading volumes remained low. This recent shift in inflows reflects positive price momentum and various concerns surrounding government debt and funding.
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