After enduring a six-week streak of outflows, digital asset investment products managed by firms like CoinShares, Grayscale, 21Shares, Bitwise, and ProShares reversed course, recording inflows of $21 million in the past week. This turnaround marks a notable shift for crypto funds that had faced ten consecutive weeks of aggregate outflows, amounting to nearly half a billion dollars.
Bitcoin played a significant role in driving these crypto fund inflows, contributing $20.4 million during the previous week. Conversely, short bitcoin investment products witnessed $1.5 million in withdrawals, further exacerbating the $85 million in outflows observed since April.
Solana funds maintained their strong performance, recording $5.1 million in inflows for the week, marking the 27th week of inflows this year, with only four weeks experiencing outflows in 2023.
However, ether products continued to face outflows for the seventh consecutive week, losing $1.5 million. This trend has made ether the “least loved” altcoin, likely influenced by the anticipation surrounding the launch of ether futures ETFs.
The influx of investments can be attributed to positive price momentum, concerns regarding U.S. government debt prices, and recent uncertainties surrounding government funding. CoinShares Head of Research James Butterfill highlighted that while this recent price surge attracted investments, both the investment product market and the broader crypto market continue to experience seasonally low volumes.
Regional trends varied, with Europe and Canada seeing inflows of $23 million and $17 million, respectively, while the U.S. witnessed outflows of $19 million. In the realm of blockchain equities, there were outflows of $8.4 million, coinciding with a broader sell-off in the technology sector.
