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Inflows into crypto ETPs reached $441 million last week

Inflows into crypto ETPs reached $441 million last week

08 Jul 2024

Caleb Reid
Caleb Reid

CoinShares researchers released a new report on the state of the cryptocurrency market, noting a significant influx of funds into digital asset investment products (ETPs). Last week, these products attracted $441 million, indicating that the recent price drop, caused by news from Mt. Gox and selling pressure from the German government, was seen by investors as a buying opportunity.

Despite the significant inflow of funds, trading volumes of exchange-traded products (ETPs) remained relatively low, totaling $7.9 billion for the week. Analysts attribute this to the typical seasonal trend of the summer months. Compared to the "overall trusted exchange market," trading volume fell by about 17%.

Regionally, the largest inflow was recorded in the US, amounting to $384 million. Hong Kong, Switzerland, and Canada also saw notable inflows of $32 million, $24 million, and $12 million respectively. Germany was an exception, showing an outflow of $23 million.

Bitcoin (BTC)-related products attracted $398 million. Notably, this amount accounted for 90% of the total inflow as investors began diversifying into a broader range of altcoins. The most prominent of these was Solana (SOL), which received $16 million last week, bringing its total inflows for the year to $57 million.

Thus, Solana became the most effective altcoin in terms of positive ETP flows. Sentiment around Ethereum (ETH) also shifted, with ETH-related products registering an inflow of $10 million. However, despite this, there has still been a net outflow of funds since the beginning of the year.

Not all segments of the cryptocurrency market showed positive results. Blockchain company stocks had a negative outcome of $8 million last week. Since the beginning of the year, this segment has seen an outflow of $556 million.

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