Coinshares recently published its weekly cryptocurrency report, revealing a small inflow of $245 million into cryptocurrency investment products last week. This comes as Bitcoin continues its recovery towards $70,000 following positive statements made by Donald Trump at the Bitcoin 2024 Conference. Coinshares noted that one of the largest inflows since December 2020 was seen with the launch of spot Ethereum ETFs in the USA.
Bitcoin and Ethereum presented a complex picture in terms of fund flows. Bitcoin saw healthy inflows of $519 million, pushing month-to-date inflows to $3.6 billion and year-to-date inflows to a record $19 billion. On the other hand, Ethereum experienced an outflow of $285 million. Other altcoins also saw mixed fund flows, with Solana (SOL) experiencing an outflow of $2.7 million, Cardano (ADA) seeing an inflow of $1.2 million, Litecoin (LTC) getting $0.6 million, and XRP receiving $0.5 million.
In terms of regional fund inflows and outflows, the USA led the pack with an inflow of $272 million, followed by Switzerland with $40.6 million. Germany received $59.6 million in outflows, while Hong Kong experienced an outflow of $3.5 million. The report highlighted the impact of US election campaign comments about Bitcoin as a potential strategic reserve asset and the increasing likelihood of a Fed rate cut in September 2024 as factors contributing to renewed investor confidence.
Despite the positive inflows seen in cryptocurrency investment products, the report also noted outflows amounting to $1.5 billion from Grayscale’s existing trust, leading to a net outflow of $285 million in ETH last week. This trend was reminiscent of Bitcoin trust exits during the January 2024 ETF launches. It is important to note that the information provided in the report is not intended as investment advice, but rather as a reflection of the current trends in the cryptocurrency market.
Overall, the data presented in Coinshares’ weekly cryptocurrency report paints a mixed picture of fund flows in the market. While Bitcoin continues to attract healthy inflows and investor confidence, Ethereum and other altcoins have seen varying levels of movement. Regional trends also highlight the dominance of the USA in terms of fund inflows, with Switzerland also showing strong interest in cryptocurrency investment products. As the market continues to evolve, it will be interesting to see how these trends develop and what impact they may have on the broader cryptocurrency landscape.
