Buy the Bitcoin Dip? Investors Seize Opportunity and Drive $441M Inflows: CoinShares

The recent price weakness caused by Mt. Gox and selling pressure from the German government is likely to be seen as a buying opportunity, as evidenced by the $441 million inflow into cryptocurrency investment products over the past week.

During the same period, ETPs recorded a low volume of $7.9 billion during the week, which is in line with the usual summer low. This also represents a 17% lower participation rate compared to the overall market of trusted exchanges.

Solana and Ethereum Turn Things Positive

According to the latest CoinShares weekly digital asset fund flows report, a reportBitcoin attracted $398 million in inflows over the past week, accounting for 90% of the total, which is lower than the usual 99%. As such, it was also noted that investors chose to invest in a wider range of altcoins. Meanwhile, short Bitcoin products also saw inflows of $0.5 million.

“The recent price weakness is likely to be seen as a buying opportunity with $441 million inflows.”

Solana was particularly notable, recording $16 million inflows, pushing its total year-to-date to $57 million. Ethereum also saw improved sentiment with $10 million inflows, even as it remains the only ETF to record net inflows so far.

Meanwhile, Litecoin-based investment products saw inflows of $0.9 million over the past week, followed by XRP, Polkadot, and Cardano with inflows of $0.4 million, $0.2 million, and $0.1 million.

Despite the overall recovery in sentiment, blockchain stocks saw an additional $8 million in outflows during the same period, pulling their year-to-date outflows to $556 million.

Germany and Sweden buck positive trend

Regionally, the United States continued to lead the pack, seeing $384 million in weekly inflows. CoinShares noted that “opportunistic buying” during the market-wide slump in the first week of July was also seen in a wide range of countries, with Hong Kong, Switzerland, and Canada the most notable, seeing $32 million, $24 million, and $12 million, respectively.

On the other hand, Germany and Sweden emerged as outliers in this trend, recording outflows of $23 million out of $3.3 million, respectively.