The latest report from CoinShares reveals that positive sentiment towards crypto assets continues, with total inflows reaching US$646 million last week. This brings the year-to-date figure to a record-breaking US$13.8 billion, surpassing the previous high of US$10.6 billion set in 2021. But there are signs that the initial frenzy around Exchange Traded Funds (ETFs) may be easing. Here is some data for Bitcoin, Ethereum and various altcoins…
Fund inflows remained strong
cryptokoin.com As we reported, CoinShares shares data on investments of institutional investors every week. While inflows have remained strong overall this week, weekly flow levels have not reached the highs seen in early March. Additionally, trade volumes have decreased significantly, falling from US$43 billion in the first week of March to US$17.4 billion last week. This signals a potential cooling off period, particularly for ETF investing.
The report highlights a regionally polarized landscape. The US remains a major driver of inflows, contributing US$648 million last week. Brazil, Hong Kong and Germany also saw positive inflows, albeit on a smaller scale, of US$10 million, US$9 million and US$9.6 million respectively. However, Switzerland and Canada experienced outflows of US$27 million and US$7.3 million respectively.
CoinShares report published: Ethereum and short Bitcoin are sold
Bitcoin continues its dominance, attracting the lion’s share of inflows of $663 million. This further strengthens its position as a prime target for investors in the crypto asset space. Interestingly, short Bitcoin investment products witnessed a total outflow of US$9.5 million for the third consecutive week. This suggests that the downtrend may ease slightly as some short sellers potentially exit their positions.
Ethereum continues to break the trend. For the fourth week in a row, there was an outflow of US$ 22.5 million. This is in stark contrast to most other altcoins that continue to attract inflows. Litecoin, Solana, and Filecoin emerged as notable examples, generating inflows of $4.4 million, $4 million, and $1.4 million, respectively. Additionally, Cardano XRP and Polkadot also recorded an inflow of $100, 200 and $600 thousand.
ETF excitement is fading
The CoinShares report paints a picture of a crypto asset market in flux. While overall sentiment remains positive, with record-breaking inflows since the beginning of the year, there are signs that initial ETF enthusiasm may stabilize. While Bitcoin maintains its leadership and attracts significant investment, short sellers appear to be losing some steam. However, Ethereum’s recent outflows raise questions about its short-term performance. The strong outlook for altcoins such as Litecoin, Solana, and Filecoin suggests diversified investor interest beyond new established players.
Looking ahead, it will be interesting to see whether current trends continue. Will ETF inflows recover, or are we witnessing a shift in investor strategies? Will Ethereum be able to reverse its recent upward trend, or will altcoins continue to be in the spotlight? The answers to these questions will likely shape the course of the crypto asset market in the coming weeks and months.
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