According to a recent report from CoinShares, the opening week of 2024 saw a significant inflow into crypto asset investment products totaling $151 million. This increase brings cumulative inflows since the Grayscale vs SEC case to an impressive $2.3 billion, representing 4.4% of total assets under management (AuM). However, it is worth noting that there is an outflow of funds from Solana (SOL coin). Here are the details…
Bitcoin dominates fund inflows
Bitcoin emerged as the frontrunner in attracting investment, capturing a significant share of $113 million. The report shows that Bitcoin’s total flows over the past nine weeks accounted for 3.2% of AuM. Interestingly, among various market dynamics, shorting bitcoin products witnessed outflows of USD 1 million in the first week of the year. Contrary to expectations that the launch of a Bitcoin spot-based ETF in the US could trigger a “buy the rumor, sell the news” scenario, the report highlights that outflows for short bitcoin exchange-traded products (ETPs) have accumulated to US$7 million in the past nine weeks.
Meanwhile, Ethereum witnessed a positive sentiment transformation with inflows totaling $29 million in the first week of 2024. In the last nine weeks, Ethereum’s cumulative inflows reached $215 million. Solana, by contrast, had a rough start to the year. Because SOL coin experienced an outflow of 5.3 million dollars.
These 5 coins entered the bags of corporates selling Solana (SOL)
Several other altcoins have exhibited notable inflows, diversifying the investment landscape. Cardano, Avalanche, and Litecoin generated $3.7 million, $2 million, and $1.4 million in revenue, respectively; This shows increasing interest in various crypto assets beyond established players. BNB and XRP saw inflows of $300 thousand and $900 thousand. Although there is no spot-based ETF in the USA, it is noteworthy that 55% of the inflows originate from the US stock markets. Germany and Switzerland contributed 21% and 17% respectively to total inflows, demonstrating the global appeal and participation in the crypto asset investment space.
The positive momentum has extended beyond crypto assets as blockchain stocks got off to a strong start to the year. Last week alone, blockchain stocks recorded inflows of $24 million. This further highlights the broader interest and trust in blockchain technology beyond cryptocurrencies. As the cryptocurrency market continues to evolve, these entry patterns reflect the dynamic nature of investor sentiment, with both established and emerging crypto assets gaining attention. The data suggests a nuanced and diversified approach to cryptoasset investing, highlighting the market’s resilience and adaptability in the face of evolving regulatory environments and market dynamics.
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