Weekly Crypto Asset Fund Flows: A Positive Shift in Investor Sentiment
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An Upturn in Crypto Investment: CoinShares Report
In a remarkable change of pace, the most recent report on crypto asset fund flows by CoinShares reveals a noteworthy shift in investor sentiment. The European digital asset management company reported an impressive $644 million in inflows into cryptocurrency investment products last week, breaking a five-week trend of outflows. This bounce back follows several weeks of bearish market sentiment, marking the first significant inflow in over a month.
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Bitcoin Takes the Lead While Ethereum Faces Outflows
According to James Butterfill, the Head of Research at CoinShares, “total assets under management have seen a 6.3% increase from their lowest point on March 10th.” He noted that inflows were recorded every day of the week, a stark contrast to the 17 successive days of outflows experienced earlier. This development suggests a newfound optimism among investors towards digital assets.
Bitcoin was the standout performer last week, drawing in a substantial $724 million in fresh capital, thus ending its own five-week outflow streak that had summed up to $5.4 billion. Interestingly, investment products betting on Bitcoin’s price decline, known as short Bitcoin products, saw outflows for the third consecutive week, totaling $7.1 million, indicating a reduction in bearish outlooks from investors.
Conversely, the altcoin market presented mixed results. Ethereum experienced the largest outflows among digital assets, with $86 million being withdrawn from ETH investment products. Similarly, Sui and Polkadot each observed outflows of $1.3 million, while Tron and Algorand saw declines of $0.95 million and $0.82 million, respectively.
In contrast, Solana stood out as the top altcoin, garnering $6.4 million in inflows. Polygon and Chainlink also saw modest gains, attracting $0.4 million and $0.2 million, respectively.
Regional Insights on Crypto Fund Flows
The United States was the primary contributor to the inflows, accounting for $632 million, while Switzerland, Germany, and Hong Kong also contributed positive amounts, albeit smaller.
Current Crypto Market Dynamics
This week marks a bullish start for the crypto market, following last week’s favorable fund flow report. Early on Monday, Bitcoin showed a significant recovery, with its value climbing nearly 5% to surpass $87,000.
At the time of writing, Bitcoin remains above the $87,000 mark, trading at approximately $87,517, which represents a 5.1% increase over the past week. However, it is important to note that Bitcoin is still down by double digits from its all-time high of over $109,000 recorded in January.
Current data from Coingecko indicates that Bitcoin’s price is roughly 19.8% below its peak. Interestingly, Ethereum, which has been consolidating within a bearish trend, also experienced an uptick. The asset rose by 3.3% over the past day, and over the past week, Ethereum surged nearly 10%, reaching a current trading price of $2,083.
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