Last Week’s Crypto Inflows Surge to $1.35 Billion: Which Digital Asset Led the Charge?
July 22 2024 - 8:30PM
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The global crypto investment market has witnessed a significant
influx of capital, with recent reports indicating a continued
positive trend in inflows. According to the latest 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 total for the current positive
streak to $3.2 billion. The fact that money has been flowing to
this extent is a testament to the amount of steam behind recent
market sentiment and confidence among investors regarding
cryptocurrencies. According to Coinshares, this inflow trend is not
isolated to one particular cryptocurrency but is rather widespread
across various digital assets. The report reveals that major asset
managers such as Ark Invest, Bitwise, BlackRock, Fidelity,
Grayscale, ProShares, and 21Shares have all reported substantial
inflows. Related Reading: Here’s Why The Bitcoin Price Crashed
Below $66,000, Taking Shiba Inu And Dogecoin With It Which Crypto
Asset Led The Charge? Unsurprisingly, most investments still flow
into Bitcoin, with decent contributions from Ethereum and other
altcoins. According to 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. 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 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 change can be seen as important since it suggests a larger
market rotation where investors may be re-aligning their portfolios
with Ethereum as it continues to see potential strong long-term
growth prospects, such as 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 were only small net
outflows from Brazil and Hong Kong. Market Performance Over The
Past Week While the crypto market fund flows have been positive in
the past week, the global price performance also appears to have
mirrored this positiveness. Over the past week, the global
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 at the time of writing. Ethereum and Solana, on the
other hand, have also managed to see a recovery in price, just like
Bitcoin. Interestingly, although Ethereum seems to be overtaking
Solana in fund flows, SOL refuses to accept defeat regarding price
performance. Related Reading: Bitcoin Price Retraces To $66,736:
Can Bulls Stage A Recovery? Particularly, according to data,
between these two assets, SOL has been the top gainer over the past
week, up by 16.8%, a significant difference compared to ETH’s mere
2.6% surge over the same period. Featured image created with
DALL-E, Chart from TradingView
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