In a positive sign for the cryptocurrency market, CoinShares’ latest weekly report reveals continued investor interest in crypto assets. Although there are only SOL coin outflows, investment in other coins continues in earnest.
CoinShares report: Inflows exceed $5.7 billion
The report published by CoinShares on February 22, 2024 shows that there have been total inflows of $598 million for four consecutive weeks, and year-to-date inflows have exceeded $5.7 billion. This figure represents a significant portion (55%) of the record-high inflows seen in 2021.
While total assets under management (AuM) reached US$68.3 billion earlier this week, the highest point since December 2021, it remains below the all-time high of US$87 billion set in November 2021.
What are the regional investment trends?
Regionally, the United States continues to be the main driver of inflows, with US$610 million arriving last week. However, it is important to note that this was heavily influenced by incumbent issuer Grayscale, which saw a total outflow of $436 million in the same period. This suggests that institutional investors using Grayscale products are potentially withdrawing their funds, even though overall market sentiment remains positive.
Brazil and Switzerland saw small inflows of $8.2 million and $2.1 million, respectively, while Canada and Sweden experienced outflows of $18 million and $8 million, respectively.
Bitcoin dominates inflows, while there are outflows for SOL coin
Bitcoin remains the most attractive asset for investors, with inflows of $570 million last week. This brings year-to-date inflows for Bitcoin to $5.6 billion. However, recent price increases have prompted some investors to hedge their bets, leading to small inflows of $3.9 million into short Bitcoin positions.
Ethereum, the second largest cryptocurrency by market capitalization, saw $17 million inflows last week. Chainlink and XRP also experienced moderate inflows of $1.8 million and $1.1 million respectively. In contrast, recent outages on the Solana network appear to have dampened investor sentiment and resulted in an outflow of $3 million.
Apart from SOL coin outflows, what are Blockchain stocks doing?
While the crypto asset market is showing signs of recovery, the report highlights continued outflows from Blockchain stocks totaling $81 million last week. This suggests that traditional stock investors are currently taking a more cautious approach towards Blockchain-related companies.
Overall, CoinShares’ weekly report paints a cautiously optimistic picture for the cryptocurrency market. While Grayscale’s outflows raise questions about institutional sentiment, consistent inflows into various crypto assets, particularly Bitcoin, point to a potential turnaround in investor confidence. As the market continues to evolve, it will be crucial to monitor both traditional and crypto asset classes to understand the full picture of investor behavior.
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