In the latest edition of the CoinShares Digital Asset Fund Flows Weekly Report, it has been revealed that Bitcoin continues to captivate investors’ attention, with significant inflows totaling a staggering $133 million in the past week.
However, despite this positive momentum for the world’s most renowned cryptocurrency, seasonal trends have kicked in, resulting in relatively low trading volumes across the market.
Digital asset investment products experienced a commendable inflow of $136 million during the previous week. This remarkable surge brought the cumulative inflows of the last three consecutive weeks to an impressive $470 million, effectively eradicating the nine-week streak of outflows that preceded it.
As a result, the year-to-date flows have now reached a net positive of $231 million. It is worth noting that the current trading turnover has witnessed a slowdown, with investment products totaling only $1 billion for the week, a significant drop compared to the average of $2.5 billion witnessed in the two previous weeks.
This decrease in volume can be attributed to the seasonal effects that typically lead to lower trading activities during the months of July and August.
While Bitcoin basks in the spotlight, continuing to attract significant investments, altcoins struggle to gain the same level of favor from investors. Short-Bitcoin, for instance, experienced outflows of $1.8 million for the 11th consecutive week, further solidifying Bitcoin’s dominance in the market.
Altcoins Struggle To Gain Investor Favor Compared To Bitcoin
Ethereum, the second-largest cryptocurrency by market capitalization, saw inflows totaling $2.9 million in the past week. However, despite the slightly improved investor sentiment, these inflows represent a mere 0.2% of total assets under management (AuM) for Ethereum, compared to Bitcoin’s substantial 1.9% share.
Furthermore, Ethereum remains in a negative net flows position year-to-date, with outflows totaling $63 million. Short-Ethereum also witnessed minor outflows of $0.3 million.
On the bright side, several altcoins experienced inflows during this period. Solana, XRP, Polygon, Litecoin, and Aave all enjoyed increased investments. Conversely, both Cosmos and Cardano experienced minor outflows.
In another interesting development, blockchain equities witnessed their largest inflows in a year, amounting to an impressive $15 million. This surge in investment signals growing confidence and interest in companies operating within the blockchain space.
Nonetheless, Bitcoin remains the favored choice among investors, attracting substantial inflows as the cryptocurrency market continues to navigate through seasonal fluctuations.
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