CoinShares’ Digital Asset Fund Flows Weekly Report reveals intriguing trends in the world of cryptocurrency investments, with Ethereum stealing the spotlight.
Despite a prior four-week inflow streak totaling an impressive $742 million, digital asset investment products experienced a minor setback, with outflows reaching $6.5 million.
The negative sentiment primarily impacted the North American market, leading to 99% of the total outflows, equaling $21 million. However, amidst this challenging situation, Switzerland and Germany brought a glimmer of hope by receiving inflows of $12 million and $1.9 million, respectively.
Lately, Bitcoin has been capturing attention as it experienced significant outflows totaling $13 million. This downward trend also affected short bitcoin investment products, which witnessed 13 consecutive weeks of outflows amounting to $5.5 million.
Interestingly, the short Bitcoin total assets under management (AuM) witnessed a significant decline from its peak, dropping to just 0.4%. It marks the lowest level since June 2022, illustrating a noteworthy shift in its value.
Market Focus Shifts To Ethereum
On the other hand, Ethereum emerged as the hero of the week, attracting a significant inflow of $6.6 million in investments. This sudden surge indicates a positive turnaround in sentiment that has been lackluster throughout the year.
But Ethereum wasn’t the only cryptocurrency gaining favor. XRP, both before and after the resolution of the SEC lawsuit, witnessed steady inflows over the last 11 weeks, totaling $6.8 million. It amounts to 8% of the AuM for XRP, indicating growing confidence in the coin’s future.
In addition, Solana, Uniswap, and Polygon witnessed a significant increase in investor interest. Specifically, inflows of $1.1 million, $0.7 million, and $0.7 million were recorded for each respective cryptocurrency. These notable investment figures hint at the potential growth and diversification within the cryptocurrency market.
Despite the minor outflows and short-term fluctuations, the digital asset investment landscape remains dynamic and full of potential. Ethereum’s surge in investor favor, alongside other cryptocurrencies’ positive momentum, suggests that the market might be on the verge of regaining its footing after a period of uncertainty.
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