Investment in global cryptocurrency products has experienced a remarkable rise, with net inflows reaching $1.2 billion in the past week. This represents the third week in a row of positive inflows and signifies a distinct change in market sentiment, as detailed in the latest report from CoinShares, a prominent firm in the digital asset investment sector.
Coinshares indicated that the increase in inflows signifies “investor confidence” in digital assets, driven by expectations of a “dovish monetary policy” in the United States. Furthermore, this trend also reflects a response to the improving “price momentum.”
According to CoinShares’ Head of Research, James Butterfill, the positive results this week represent the largest surge in the last ten weeks, with total assets under management climbing by 6.2%. The inflow was primarily motivated by heightened interest in Bitcoin investment products.
After weeks of downward trends, Ethereum-based investment funds saw a revival, capturing net weekly inflows and demonstrating a shift in investor sentiment regarding the asset.
Bitcoin Leads Inflows as Spot ETF Approval Enhances Market Outlook
The main source of last week’s inflows was Bitcoin, which comprised $1.1 billion of the total global net inflows.
Butterfill stated that the approval for BlackRock’s spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC) played a crucial role in bolstering market optimism.
CoinShares’ Head of Research noted that this regulatory advancement created a positive environment for investors, even though trading volumes experienced a slight drop, decreasing by 3.1% from the previous week.
Meanwhile, investment funds located in the US significantly contributed to the inflows, with spot Bitcoin ETFs accounting for most of the total. US-based funds reported a net inflow of $1.2 billion, with $1.1 billion attributed to Bitcoin-focused products.
Moreover, Switzerland-based crypto funds attracted net inflows of $84 million. However, this positive trend was not consistent across all regions, as funds in Germany and Brazil faced net outflows of $21 million and $3 million, respectively.
This week also witnessed a contrasting trend in short Bitcoin investment products, which recorded net inflows of $8.8 million as Bitcoin’s price increased.
Ethereum Experiences Recovery, Solana Breaks Positive Streak
One significant development was the end of a five-week decline for Ethereum-based investment products, which saw net inflows of $87 million worldwide, with US-based spot Ethereum ETFs contributing $85 million.
This represents the largest net weekly inflow for Ethereum funds since August, indicating a revival of confidence in the asset’s medium-term outlook.
In contrast, Solana-based investment products have seen their five-week streak of net inflows come to an end. Last week, $4.8 million was withdrawn from Solana funds on a global scale.
While Solana previously enjoyed a phase of growth and positive sentiment, this reversal suggests investors may be shifting their attention back to more established assets like Bitcoin and Ethereum in the short term.
Featured image created with DALL-E, Chart from TradingView
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