After weeks of massive inflows, bitcoin (BTC) investment products reversed trend last week, with an outflow of $13 million. Altcoin funds such as Ethereum (ETH) and XRP (XRP) have become popular. Crypto asset management company CoinShares reported on the 24th.
Trend reversal due to exhaustion of materials
Digital asset funds as a whole saw inflows of $742 million over the past four weeks, but saw outflows of $6.5 million last week.
Bitcoin has seen some big buys in recent weeks, but running out of stock seems to be the reason for the trend reversal. BlackRock, the world’s largest asset manager, filed for a long-coveted Bitcoin exchange-traded fund (ETF) on June 15, followed by competitors. In response to this news, for the next month, investment in investment funds centered on Bitcoin was made at the fastest pace since October 2021.
Confidence in Altcoins Restored
The partial victory of XRP in a lawsuit with the U.S. Securities and Exchange Commission (SEC) earlier this month pushed the price of bitcoin to a one-year high, but the price quickly fell below $30,000. However, the ruling restored investor confidence in altcoins. This is borne out by the positive flow of funds until last week.
Ethereum-related investment products had the largest inflow of all crypto assets, totaling $6.6 million. James Butterfill, head of research at CoinShares, said the growth suggests that “sentiment, which had been sluggish this year, is starting to pick up” regarding Ethereum.
Over the past 11 weeks, the XRP fund has seen inflows of $2.6 million, bringing the total to $6.8 million. Represents 8% of all cryptocurrency inflows under management. “This shows that investors are becoming more and more confident in the prospects of XRP,” said Butterfill.
Funds holding smaller altcoins such as Solana (SOL), Uniswap (UNI), and Polygon (MATIC) saw inflows of $1.1 million, $700,000, and $700,000, respectively.
｜Editing: Rinan Hayashi
｜Original: Crypto Investors Sour on Bitcoin Funds After Massive Inflows, Turn Instead to Ether and XRP