Bitcoin Investment Products See Inflows, Altcoins Suffer Losses: MATIC and ETH Hit the Hardest!

• According to the latest version of CoinShares’ “Digital Asset Fund Flows Weekly Report,” there is a possibility that the negative sentiment may start to change, as pointed out by the company’s Head of Research, James Butterfill.
• Last week, investors who started with high hopes for spot ETF approval in the U.S. following Grayscale’s victory were disappointed when all other spot ETF applications were postponed.
• Altcoins experienced significant outflows. Polygon and Ethereum were hit the hardest, and Solana emerged as the “most favored” altcoin among investors.

Bitcoin investment products have seen small inflows over the past week, but altcoins have not followed the same trend; MATIC and ETH suffered huge losses.

Bitcoin Investment Products See Small Inflows

Outflows have significantly slowed down, and Bitcoin products appear to be showing resilience amid a stagnant market trend. According to the latest version of CoinShares’ “Digital Asset Fund Flows Weekly Report,” there is a possibility that the negative sentiment may start to change, as pointed out by the company’s Head of Research, James Butterfill.

Butterfill observed that this year has been marked by significant fluctuations in investor flows, driven primarily by expectations and concerns surrounding digital asset regulations. Last week, investors who started with high hopes for spot ETF approval in the U.S. following Grayscale’s victory were disappointed when all other spot ETF applications were postponed.

CoinShares’ report states that digital asset investment products recorded modest outflows of $11.2 million. Due to the ongoing period of negative sentiment, a total of $342 million in outflows has occurred over the past seven weeks.

Bitcoin recorded weekly inflows of $3.8 million, while short-term BTC outflows continued for 19 weeks, totaling $3.3 million, and assets under management (AuM) have declined by 48% from this year’s peak.

Altcoins experienced significant outflows. Polygon and Ethereum were hit the hardest, losing $8.6 million and $3.2 million, respectively. Solana emerged as the “most favored” altcoin among investors, maintaining inflows for nine weeks and accumulating $26 million in assets since the beginning of the year.

Despite relatively low activity in terms of flows, trading volume remained significantly high, more than 90% above the norm for this year, totaling $2.8 billion.

Hope Amidst Challenges in the Bitcoin Market

While the current market situation may seem indifferent, Butterfill suggests there are reasons to be optimistic. In a separate blog post, the digital asset manager’s head highlighted that long-term trends point to increasing volumes, and short-term data indicates a resurgence is beginning.

Furthermore, it appears that investors are distancing themselves from the U.S., reducing market share from 90% earlier this year to 60% today. Butterfill stated:

“Beyond this, Bitcoin’s trading volume may appear subdued, but it still surpasses the trading volumes of the London Stock Exchange, the world’s sixth-largest exchange.”