The crypto investment landscape has experienced nine consecutive weeks of outflows, as highlighted in the “Digital Asset Fund Flows Report” published by CoinShares, a European cryptocurrency investment firm. However, amidst this downward trend, certain altcoins, including XRP, Cardano, and Polygon, managed to attract inflows due to the recent crash in altcoin prices. This article delves into the details of the outflows, regional breakdown, and the altcoins that bucked the trend by attracting investor interest.
CoinShares’ “Digital Asset Fund Flows Report” reveals that cryptocurrency investment products witnessed outflows of $5.1 million last week, extending the streak of outflows for the ninth consecutive week. This ongoing trend has led to a cumulative total of $423 million in outflows over the nine-week period.
While there was a glimmer of hope towards the end of the week with news of BlackRock, one of the world’s largest asset managers, submitting an application for a Bitcoin exchange-traded product (ETP) in the United States, the resulting inflows were not significant enough to offset the earlier outflows. As a result, the streak of outflows persisted.
Looking at the regional breakdown, the United States and Germany experienced minor inflows of $3.7 million and $2.4 million, respectively. The United States maintained its lead in terms of total inflows year-to-date, accumulating $147 million, while Canada faced outflows amounting to $277 million. CoinShares’ report author, James Butterfill, highlighted the lack of measurable inflows into ETPs in Hong Kong, despite improving regulatory conditions in the region.
The crash in altcoin prices during the previous week served as a catalyst for investors to increase their positions in certain cryptocurrencies. Noteworthy inflows of $2.4 million were observed, with XRP, Cardano, and Polygon receiving significant attention. XRP attracted $1 million, Cardano received $0.6 million, and Polygon saw inflows of $0.2 million.
Conversely, Ether experienced the largest outflows, totaling $5 million for the week. Tron and Avalanche also experienced outflows of $0.4 million each. Additionally, CoinShares noted that blockchain equities witnessed the largest outflows, amounting to $12.3 million since FTX.
The recent application by BlackRock for the first Bitcoin spot exchange-traded fund (ETF) in the United States has the potential to significantly impact the wider acceptance and adoption of cryptocurrency investment products in the country. If approved, the ETF would provide regulated and accessible exposure to Bitcoin for investors.
The crypto investment industry has witnessed nine consecutive weeks of outflows, according to CoinShares’ report. However, amidst this trend, certain altcoins such as XRP, Cardano, and Polygon managed to attract inflows, likely driven by the recent crash in altcoin prices. The application by BlackRock for a Bitcoin spot ETF introduces the potential for broader adoption and acceptance of cryptocurrency investment products in the United States. As the market continues to evolve, investors will closely monitor these developments and adjust their strategies accordingly.