Global cryptocurrency investment products rose, recording net inflows of $1.2 billion over the past week. This represents the third consecutive week of positive flows and a notable shift in market sentiment, as highlighted in the latest report a report From CoinShares, a leading digital asset investment company.
Coinshares revealed that the upward trend in inflows reflects “investor confidence” in digital assets amid expectations of “easy monetary policy” in the US. In addition, it is also seen as a reaction to improving “price momentum.”
According to CoinShares Head of Research, James Butterville, this week’s positive performance is the largest in the past 10 weeks, with total assets under management rising by 6.2%. The influx stems largely from growing interest in Bitcoin-focused investment products.
Additionally, after weeks of declining performance, Ethereum-based investment funds recorded a rebound, attracting net weekly inflows and representing a shift in investor sentiment towards the asset.
Bitcoin dominates inflows as instant ETF approval boosts market
The main driver behind last week’s inflows was Bitcoin, which accounted for $1.1 billion of global net inflows.
According to Butterville, the approval of listing and trading options for BlackRock’s Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC) has greatly contributed to market optimism.
The head of research at CoinShares revealed that this regulatory development set a positive tone for investors, although trading volumes saw a slight decline, falling by 3.1% compared to the previous week.
In the meantime. US-based investment funds were the main contributor to inflows, with spot bitcoin ETFs making up the majority. The US-based funds generated a net inflow of $1.2 billion, a large portion of which — $1.1 billion — came from Bitcoin-focused products.
In addition, Swiss-based cryptocurrency funds attracted net inflows of $84 million. However, this positive trend was not uniform across all regions, with funds in Germany and Brazil seeing net outflows of $21 million and $3 million, respectively.
The week also saw a contradictory movement in short Bitcoin investment products, which recorded net inflows of $8.8 million amid the increase in Bitcoin prices.
Ethereum is seeing a rebound, and Solana ends a positive streak
One noteworthy development was the reversal of a five-week negative trend in Ethereum-based investment products. These funds attracted net inflows of $87 million globally, with US Ethereum ETFs contributing $85 million.
This represents the largest weekly net inflow of Ethereum funds since August and indicates renewed confidence in the asset’s medium-term prospects.
In contrast, Solana-based investment products ended a five-week streak of net inflows. Over the past week, $4.8 million was withdrawn from Solana funds globally.
While Solana has seen a period of growth and positive sentiment, the reversal suggests that investors may look to shift their focus to more established assets like Bitcoin and Ethereum in the short term.
Featured image created with DALL-E, chart from TradngView