Crypto-related investment products registered a significant inflow last week. A recent report from CoinShares revealed that asset managers including BlackRock, Fidelity, Ark Invest, Bitwise, Grayscale, ProShares, and 21Shares saw positive flows worth $1.4 billion, indicating “buying on price weakness.”
The YTD inflows now stand at a record high$17.8 billion. This represents a significant jump from the 2021’s $10.6 billion registered.
Bitcoin was one of the biggest benefactors. It registered its fifth-largest weekly inflow on record [$1.35 billion]. On the other hand, short Bitcoin saw the largest weekly outflows since April [$8.6 million].
Chalking out the reason, the report’s author James Butterfill said,
“We believe price weakness due to the German Government bitcoin sales and a turnaround in sentiment due to lower than expected CPI in the US prompted investors to add to positions.”
Despite the records achieved, it should be noted that volumes continue to hover around lows. Last week, around $8.9 billion was registered, while the 7-day average this year currently stands at $21 billion.
Ethereum specifically registered positive flows of $72 million last week, the highest since March. This was likely in anticipation of the impending approval of the spot-based ETFs in the US.
A recent report brought to light that the prospective issuers of the ETFs were informed by the Securities and Exchange Commission that the funds could begin trading next Tuesday, July 23.
One issuer was told that the regulator had no further comments on the latest S1 form submitted, and that the final versions need to be submitted by Wednesday.
Other altcoins also saw positive flows. Solana, Avalanche, and Chainlink saw inflows of $4.4 million, $2 million, and $1.3 million respectively.
Overall, the US led the regional front flows for the week [$1.3 billion], followed by positive sentiment by other countries including Switzerland which registered a record this year for inflows, Hong Kong, and Canada with $58 million, $55 million and $24 million respectively.
