The worldwide crypto investment market has witnessed a giant influx of capital, with recent reports indicating a continued positive trend in inflows. Based on essentially the most recent data from CoinShares, digital asset investment products have seen an additional $1.35 billion in net inflows last week.
This recent injection of funds has brought the complete for the current positive streak to $3.2 billion. The incontrovertible indisputable fact that money has been flowing to this extent is a testament to the amount of steam behind recent market sentiment and confidence amongst investors regarding cryptocurrencies.
Based on Coinshares, this inflow trend just isn’t isolated to 1 particular cryptocurrency but is fairly widespread across various digital assets.
The report reveals that major asset managers just like Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares, and 21Shares have all reported substantial inflows.
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Which Crypto Asset Led The Charge?
Unsurprisingly, most investments still flow into Bitcoin, with decent contributions from Ethereum and other altcoins.
Based on the report, Bitcoin registered roughly $1.27 billion of inflows last week, with short-Bitcoin exchange-traded products (ETPs) seeing further outflows of $1.9 million, bringing outflows since March to US$44 million.
Notably, the transaction volume spurred so far has contributed to a 45% week-over-week increase in ETP trading volumes, representing 22% of the broader crypto market’s total trading volumes.
Aside from Bitcoin’s continuous dominance, Ethereum’s recent performance relative to other altcoins has also been noteworthy.
Crypto asset fund flows. | Source: CoinShares
James Butterfill, Head of Research at CoinShares, noted a turning point in investor portfolio allocation, with Ethereum overtaking Solana for net inflows year-to-date. Butterfill noted:
The outlook for Ethereum seems to have turned a corner, seeing a further US$45m of inflows last week, overtaking Solana for the altcoin with probably essentially the most inflows year-to-date (YTD) at US$103m. Solana also saw inflows last week totalling US$9.6m, but now lags Ethereum with US$71m inflows YTD.
This transformation may be seen as essential since it suggests an even bigger market rotation where investors is also re-aligning their portfolios with Ethereum since it continues to see potential strong long-term growth prospects, just like the upcoming launch of its spot exchange-traded funds (ETFs).
Furthermore, investment flows have also varied significantly across regions. While the US and Switzerland top the table by a margin, there have been only small net outflows from Brazil and Hong Kong.
Crypto asset fund flows by region. | Source: CoinShares
Market Performance Over The Past Week
While the crypto market fund flows have been positive to this point week, the worldwide price performance also appears to have mirrored this positiveness. Over the past week, the worldwide crypto market valuation has surged from $2.4 trillion to $2.6 trillion.
This increase comes against the backdrop of Bitcoin seeing a notable recovery that brought its price to trade as high as above $68,000 earlier today before now trading below $67,000 on the time of writing.
BTC price is moving upwards on the 1-hour chart. Source: BTC/USDT on TradingView.com
Ethereum and Solana, alternatively, have also managed to see a recovery in price, just like Bitcoin. Interestingly, although Ethereum appears to be overtaking Solana in fund flows, SOL refuses to only accept defeat regarding price performance.
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Particularly, in response to data, between these two assets, SOL has been the very best gainer over the past week, up by 16.8%, a giant difference as compared with ETH’s mere 2.6% surge over the similar period.
Featured image created with DALL-E, Chart from TradingView