- Last week’s crypto market rally led to a flow of funds into crypto-backed investment products.
- Last week, Ethereum recorded its highest weekly inflows since March.
- Digital asset investment products recorded inflows totaling $1.05 billion last week, marking the third consecutive week of inflows, digital asset investment firm CoinShares found in its new report.
Bitcoin-backed investment products saw inflows of $1.05 billion last week, pushing YTD inflows to $14.9 billion.
Bitcoin’s YTD Inflows Topple $14 Billion
Last week, Bitcoin-backed investment products saw inflows of $1.03 billion, representing 98% of all inflows recorded during that period. This pushed the leading coin’s YTD inflows to $14.60 billion, an 8% rally from the previous week’s YTD inflow of $13.58 billion.
Short-Bitcoin Products See Outflows
Regarding short-Bitcoin products, they recorded outflows of $4.3 million last week, bringing their month-to-date outflows to $8.8 million. CoinShares said this might be due to changing sentiments around Bitcoin from negative to positive.
“This is likely due to investors interpreting the FOMC minutes and recent macro data as mildly dovish,” it added.
Ethereum Reaches New Milestone
During the week under review, the leading altcoin, Ethereum [ETH], witnessed an inflow of $38 million into its digital asset products, representing its highest since March. CoinShares said this was,
“Likely an early reaction to the approval of ETH ETFs in the United States.”
However, due to the series of outflows that Ethereum-backed products have experienced in preceding weeks, its month-to-date flows stood at a deficit of $11.1 million last week.
Conclusion
The recent inflows into Bitcoin and Ethereum-backed investment products highlight a growing investor confidence in these digital assets. With Bitcoin’s YTD inflows surpassing $14 billion and Ethereum reaching new milestones, the crypto market continues to show resilience and potential for growth. Investors should keep an eye on regulatory developments and market sentiment, which will likely shape future inflows and overall market performance.
