TL;DR

Inflow Records: Digital assets investment products received a staggering $1.44 billion in inflows last week, pushing year-to-date inflows to an impressive $17.8 billion. This surpasses the entire inflow for 2021, which stood at $10.6 billion.
Bitcoin’s Resurgence: Bitcoin led the charge, attracting $1.35 billion in weekly inflows—the fifth-largest on record. The recent dip in Bitcoin’s price due to German government sales created an attractive entry point for investors.
Altcoin Momentum: Ethereum saw its highest weekly inflows ($72 million) since March, driven by anticipation around the approval of a spot-based ETF in the US. Other altcoins like Solana, Avalanche, and Chainlink also experienced healthy inflows, signaling continued confidence in blockchain projects.

Digital assets investment products continue to defy expectations, attracting robust investor interest despite recent price fluctuations. Last week’s record-breaking inflow of $1.44 billion propelled year-to-date (YTD) inflows to a staggering $17.8 billion, handily surpassing the entirety of 2021’s $10.6 billion.

While trading volumes dipped to $8.9 billion for the week compared to the year’s average of $21 billion, the overall sentiment across the market remains decidedly positive.

Digital Assets’ Global Trend

Breaking down the geographical distribution, the United States emerged as the frontrunner with $1.3 billion in inflows. However, this positive sentiment appears to be a global phenomenon. Switzerland shattered its previous yearly record this week with $58 million in inflows, followed closely by Hong Kong ($55 million) and Canada ($24 million).

Bitcoin ($1.35 billion) secured the fifth-largest weekly inflows on record. This surge can likely be attributed to a confluence of factors. The German government’s recent Bitcoin sales triggered a temporary price dip, which some investors viewed as a reasonable entry point.

This sentiment was further bolstered by a positive shift in investor confidence following lower-than-expected CPI data released in the US, signifying a potential cool-down in inflation.

Interestingly, short-Bitcoin products experienced their largest weekly outflows since April, totaling $8.6 million. This suggests a potential decline in bearish bets on Bitcoin’s price, as investors move towards a more bullish or neutral stance.

Altcoins also enjoyed a positive week. Ethereum ($72 million) witnessed its highest inflows since March, likely fueled by the anticipation surrounding the imminent approval of a spot-based ETF in the US. This long-awaited development could unlock a significant new capital pool into the Ethereum ecosystem.

Beyond Ethereum, other notable performers included Solana ($4.4 million), Avalanche ($2 million), and Chainlink ($1.3 million), all registering healthy inflows that signal continued investor confidence in the potential of various blockchain projects.

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Filed under: News - @ July 15, 2024 11:15 am