Last week saw another inflow of digital asset funds, even if it was a relatively small sum, to bring the inflow streak to two weeks. Investment funds saw a net flow of $30 million in the last week. Bitcoin was a key highlight of last week for its strong performance at attracting investors’ interest. Bitcoin, which had been overshadowed in the week prior by Ethereum, regained the lead, attracting the bulk of inflows. Solana experienced the largest ever outflow, primarily due to a drop in trading volume of Solana meme coins.
Bitcoin Market Dominates
CoinShares revealed last week’s data for digital asset investments funds. latest weekly report, The report reveals that investors are being cautious in the face of uncertain economic indicators. The report states that digital assets investment products saw minor inflows of $30 million.
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Recent data suggest that FED will be less inclined to reduce interest rates 50 basis points by September. Investors are therefore more cautious when investing in funds for digital assets. Weekly trading volumes were around $7.9billion. This is down 50% from last week.
As mentioned earlier, most of the inflows went into Bitcoin-based products. Inflows of $42 millions, a 223% rise from $13 million registered the previous week. Multi-asset products ranked second, with inflows of $21 millions. Investors have shown continued interest in these products that offer exposure to multiple crypto currencies.
Ethereum is a cryptocurrency that has experienced some traction. dramatic drop in inflows. Ethereum-based products saw only $4.2 inflows in last week. That’s a 97% decline from the $155.4 inflows registered the week prior. CoinShares notes, however, that Ethereum has seen a surge of activity from providers. XRP, meanwhile, also saw a small net flow of $0.2 million. The result reflects a conservative yet optimistic stance towards this asset, following the recent SEC-Ripple litigation.
Solana led with 38.9 millions dollars, its highest weekly outflow ever. It was an honest reflection of the sentiment surrounding the Solana eco-system, particularly meme coins. Last week, Solana bulls were able to keep the price of the cryptocurrency at $140. However, this was not the case for Solana meme coins.
BTC Investors Need To Be More Moderate
This meme coin, which has pushed institutional investments in Solana earlier in the yearShort-Bitcoin ETFs experienced outflows of $0.9 million. Outflows of $0.9 million were recorded by Short-Bitcoin Exchange Traded Funds. This may indicate a persistent bullish attitude toward Bitcoin but it’s a drop from the $16.2 Million outflow that was registered the week before. It is clear that Bitcoin investors are being more cautious.
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Geographically, the flows are very diverse. With $62 Million inflows, the United States was first. Canada and Brazil both saw positive inflows, of respectively $9.2 and $7.7 million. Switzerland and Hong Kong were the two countries that saw outflows of $30 million each and 14 million respectively.
Chart from Tradingview.com, image from Adobe Stock
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Source: www.newsbtc.com
