The global cryptocurrency investment market has seen a huge influx of capital, with recent reports indicating a continued positive trend in inflows. According to the latest Data From CoinShares, digital asset investment products saw an additional net inflow of $1.35 billion last week.
This latest infusion of funds brings the current total positive inflows to $3.2 billion. The fact that funds have flowed this far is a testament to the momentum surrounding recent market sentiment and investor confidence in cryptocurrencies.
According to Coinshares, this flow trend is not isolated to one particular cryptocurrency, but rather is widespread across many digital assets.
The report reveals that major asset managers such as Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares, and 21Shares have all reported significant inflows.
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Which crypto assets led the attack?
Unsurprisingly, most investments continue to flow into Bitcoin, with decent contributions from Ethereum and other altcoins.
According to the report, Bitcoin saw inflows of around $1.27 billion last week, with further outflows of $1.9 million seen in Bitcoin exchange-traded products (ETPs), bringing outflows since March to $44 million.
It is worth noting that the volume of transactions stimulated so far has contributed to a 45% increase in the trading volumes of exchange-traded products on the exchange on a weekly basis, which represents 22% of the total trading volumes in the broader cryptocurrency market.
aside From Bitcoin’s continued dominance, Recent Ethereum Performance It was also worth noting in comparison to other altcoins..
James Butterfill, head of research at CoinShares, pointed to a turning point in investor portfolio allocation, with Ethereum outpacing Solana in terms of net inflows since the start of the year. Butterfill noted:
Ethereum’s outlook appears to have turned in the right direction, with an additional $45 million inflow last week, surpassing Solana’s year-to-date inflows of $103 million. Solana also saw $9.6 million inflows last week, but now trails Ethereum with $71 million inflows so far.
This change could be seen as significant as it signals greater market turnover as investors may realign their portfolios with Ethereum as it continues to see strong long-term growth potential, such as the upcoming launch of exchange-traded funds (ETFs).
Moreover, investment flows varied widely across regions. While the United States and Switzerland led by a margin, there were only small net outflows from Brazil and Hong Kong.
Market performance over the past week
While cryptocurrency market fund flows have been positive over the past week, global price performance appears to be reflecting this positivity as well. Over the past week, the global cryptocurrency market cap has risen from $2.4 trillion to $2.6 trillion.
This increase comes on the back of a significant recovery in Bitcoin that saw its price trade at a high of $68,000 earlier in the day before now Trading below $67,000 at the time of writing.
On the other hand, Ethereum and Solana have also managed to see a price recovery, just like Bitcoin. Interestingly, although Ethereum seems to be outperforming Solana in terms of fund flows, Solana refuses to accept defeat in terms of price performance.
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In particular, according to the data, between these two assets, SOL was the biggest gainer over the past week, rising by 16.8%, a significant difference compared to ETH’s rise of only 2.6% over the same period.
Featured image created using DALL-E, chart from TradingView
