- Last week’s inflows into crypto funds totaled $78 million.
- This represented the highest figure recorded since July.
Digital asset investment products recorded inflows totaling $78 million last week, marking the second consecutive week of inflows and the largest one since July, digital asset investment firm CoinShares found in a new report.
Last week’s $78 million liquidity influx into crypto funds represented a 271% increase from the $21 million inflows recorded the previous week.
On a regional level, the disparity in market sentiments between Europe and America persisted.
CoinShares found:
“Regionally, the divide continues, with 90% of inflows from Europe, while the US and Canada saw just US$9m inflows combined, suggesting a continued divergence in sentiment.”
Following several weeks of persistent capital outflows from digital asset investment funds, year-to-date (YTD) net inflows fell below $100 million by the end of September. In its report dated 25 September, the YTD net inflows amounted to $40 million.
However, with steady inflows recorded in the last two weeks, the report confirmed YTD flows remained positive and well above $100 million at $181 million.
Bitcoin and Short-bitcoin products
With $43 million added to crypto funds last week, Bitcoin [BTC] investment products accounted for almost 55% of the total inflows recorded. This brought the coin’s month-to-date outflows to $43 million, a significant shift from the previous week’s net outflow of $103 million.
Regarding its YTD flows, BTC had previously seen a consistent decline in net inflows due to its struggle within a narrow price range. However, with the inflows recorded in the past two weeks, the coin’s YTD inflows rose by 46%.
According to CoinShares, BTC’s YTD net inflows totaled $246 million last week. In the week before, this was $168 million.
Interestingly, despite last week’s positive price performance,
“Some investors saw recent price strength as an opportunity to add to short-bitcoin positions, which saw inflows of US$1.2m over the same period.”
The inflow of funds into short-Bitcoin products last week was noteworthy because, since April, the digital asset had consistently witnessed weekly outflows, reaching $85 million by 2 October.
This suggested that despite the BTC’s price narrow movements amid poor sentiments, investors largely held long positions. However, with last week’s inflows, some investors placed bets against BTC, suggesting a change in sentiment.
ETF failed to pull in investors; Solana thrives
The week under review saw the launch of six different exchange-traded funds based on Ethereum [ETH] futures.
They included the VanEck Ethereum Strategy ETF (EFUT), the Bitwise Ethereum Strategy ETF (AETH), the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP), and three funds from ProShares, including the ProShares Ether Strategy ETF (EETH).
However, despite this, this failed to excite investors, as,
“The new ETFs attracted just under US$10m in the first week, highlighting tepid appetite.”
According to CoinShares:
“It is likely due to poor investor appetite for digital assets at present, and unfair to compare to the Bitcoin futures ETF launches in October 2021, as appetite was much higher for the assets class overall.”
As for Solana [SOL], the altcoin recorded its largest week of inflows of $24 million since March 2022. Referred to as “the altcoin of choice” by CoinShares, the coin’s funds have seen inflows in 28 weeks this year and just four weeks of outflows so far this year.
