CoinShares: Record Weekly Inflows for Crypto Investment Products

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As a seasoned financial analyst with extensive experience in the digital asset market, I find the recent trends in crypto investment products quite intriguing. Last week’s events showcased investors’ resilience and their knack for seizing opportunities during market corrections.

Last week, CoinShares Research reported that digital asset investment products experienced their fifth-largest weekly inflow on record, totaling approximately $1.44 billion. Amidst the broader crypto market correction, investors viewed this as a chance to buy, pouring in significant funds.

The data from CoinShares reveals that investments in the sector have amounted to $17.8 billion so far this year, significantly more than the $10.6 billion recorded in 2021. However, despite this substantial increase, weekly trading volumes only reached $8.9 billion – a figure much lower than the average weekly volume of $21 billion seen this year.

The United States took the forefront, injecting $1.3 billion into global markets last week. Elsewhere, investors viewed the market downturn as an opportunity to buy, adding $55 million from Hong Kong and $24 million from Canada. Meanwhile, Switzerland recorded its largest inflows of the year at $58 million.

Crypto-Wise Performance

Last week, Bitcoin attracted approximately $1.35 billion, making it the week with the fifth-largest inflow in its history. Conversely, short Bitcoin products experienced their largest weekly outflows since April, amounting to $8.6 million. According to CoinShares’ investment strategist James Butterfill, this trend can be attributed to several factors.

“It’s our belief that the German government’s Bitcoin sell-offs and unexpectedly low US Consumer Price Index led investors to increase their holdings.”

As a crypto investor, I’m excited to share that the Securities and Exchange Commission (SEC) gave the green light for the launch of spot bitcoin Exchange-Traded Funds (ETFs) back in January. Since then, these innovative investment products have attracted an impressive $15.8 billion in net inflows, bringing their total net asset value to a substantial $51.34 billion. Impressively, JPM Securities forecasted that these spot ETFs could witness a staggering $220 billion of inflows by the year 2027.

Last week witnessed significant activity for Ethereum, with a notable inflow of $72 million – the largest since March. This surge in investment may be indicative of the upcoming approval of a spot-based Ether ETF in the United States. According to CoinShares, other altcoins such as Solana, Avalanche, and Chainlink also experienced inflows amounting to $4.4 million, $2 million, and $1.3 million respectively.

Market Rebound

At the onset of a new week, Bitcoin’s price rebounded to reach approximately $63,000, exceeding its 200-day simple moving average (SMA). This significant benchmark is closely monitored by investors as it reflects long-term trends and indicates a favorable outlook for traders.

Following the assassination attempt on former US President Donald Trump at a campaign event in Pennsylvania, there was a significant revival in the value of the largest cryptocurrency. Additionally, Trump-themed Polifi tokens experienced a surge in value due to this unexpected incident.

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2024-07-15 15:54