Global crypto investment products have soared, registering net inflows of $1.2 billion last week. This marks the third week in a row of positive inflows and a notable shift in market sentiment, as reflected in the latest report report from CoinShares, a leading digital asset investment firm.
Coinshares revealed that the upward trend in inflows reflects “investor confidence” in digital assets amid expectations of an “expansive monetary policy” in the US. Moreover, it is also seen as a response to improving ‘price momentum’.
According to James Butterfill, head of research at CoinShares, this week’s positive performance is the largest in the past ten weeks, with total assets under management increasing by 6.2%. The inflows largely stemmed from increased interest in Bitcoin-focused investment products.
Furthermore, after weeks of declining performance, Ethereum-based mutual funds recorded a rebound, attracting net weekly inflows and marking a turnaround in investor sentiment towards the asset.
Bitcoin dominates inflows as spot ETF approval drives the market
The main driver of last week’s inflows was Bitcoin, which accounted for $1.1 billion of global net inflows.
According to Butterfill, approval for the listing and trading opportunities is in favor BlackRock’s Bitcoin Exchange Traded Fund (ETF) from the US Securities and Exchange Commission (SEC) contributed significantly to market optimism.
The head of research at CoinShares announced that this regulatory development set a positive tone for investors, even though trading volumes saw a small decline, falling 3.1% compared to the previous week.
In the meantime. mutual funds based in the US were the important contributors to the inflowwith spot Bitcoin ETFs making up the majority. The US-based funds generated net inflows of $1.2 billion, with a significant portion – $1.1 billion – coming from Bitcoin-focused products.
Additionally, Swiss-based crypto funds attracted net inflows of $84 million. However, this positive trend was not uniform across all regions, as funds in Germany and Brazil saw net outflows of $21 million and $3 million respectively.
The week also saw a contrasting move in short Bitcoin investment products, which registered net inflows of $8.8 million amid the Bitcoin price surge.
Ethereum sees recovery, Solana ends positive streak
One of the notable developments was the reversal of a five-week negative trend in Ethereum-based investment products. These funds attracted net inflows of $87 million globally, with US-based spot Ethereum ETFs contributing $85 million.
This marks the largest net weekly inflow for Ethereum funds since August and signals renewed confidence in the asset’s medium-term prospects.
Unlike Solana-based investment products ended their five-week streak of net inflows. Last week, $4.8 million was pulled from Solana funds worldwide.
While Solana has seen a period of growth and positive sentiment, the turnaround indicates that investors may want to shift their near-term focus to more established assets such as Bitcoin and Ethereum.
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