Malaya Ruiz
Despite negative market sentiment, digital asset funds have attracted $441 million in capital inflows as per the latest data by CoinShares Head of Research James Butterfill. Investors sent $398 million to Bitcoin, the leading cryptocurrency by market cap, with Solana and Ethereum seeing $16 million and $10 million in inflows, respectively.
Butterfill noted in his blog post that there has been a change in sentiment toward Ethereum, evidenced by a $10 million influx, yet it remains the sole exchange-traded product (ETP) with net outflows for the year.
“Bitcoin saw US$398m inflows but unusually represented just 90% of total inflows as investors chose to invest across a much broader set of altcoins. Most notable of which was Solana, seeing US$16m last week, bringing year-to-date (YTD) inflows to US$57m, making it the best performing altcoin from a flows perspective. Ethereum sentiment seems to have turned, seeing US$10m inflows, but remains the only ETP to have seen net outflow YTD,” Butterfill wrote.
Related: Strategy Sells $1.4B in Stock to Cover Bills Amid Bitcoin Slump
The report pointed out that the surge of inflows came as a result of “price weakness” caused by recent activities related to Mt. Gox and the German government, which were perceived as a favorable buying opportunity for investors.
In terms of regional inflows, the United States dominated with $384 million, while Hong Kong, Switzerland, and Canada contributed significantly, with $32 million, $24 million, and $12 million, respectively. Germany was an exception, experiencing outflows of $23 million.
This development coincides with the recent dip in Bitcoin’s price to levels not seen since February and the shift in sentiment in the overall crypto market toward a more bearish outlook.
Bitcoin has seen a decrease in value in the past week, while the Standard and Poor’s 500 (S&P 500) is heading toward a new record high. This pattern reminds some market participants of the correlation between cryptocurrency and traditional stocks prior to the onset of the COVID-19 crisis.
Related: The History of Altcoins: How Bitcoin’s Rivals Changed the Crypto Game
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MALAYA RUIZ
Malaya is dedicated to helping individuals share meaningful narratives about crypto, blockchain, and future tech. Her extensive experience in editing, copywriting, and publishing gives her a deep understanding of the craft of storytelling and collaboration, which she channels through Shiba Inu's official publications. Malaya owns two dogs and therefore has a special admiration for the Shiba Inu breed.
