Investment products based on digital assets have seen four consecutive weeks of inflows, with Bitcoin (BTC) securing $55.3 million, largely driven by anticipation surrounding a potential approval of a BTC ETF in the US.
The recent CoinShares weekly market analysis reveals an uptick in interest for digital asset offerings, a diminishing US market share, and an escalation in assets under management (AUM).
After facing multiple downturns, the market has now witnessed its fourth straight week of positive inflows, amounting to $66 million. Additionally, AUM has reached $33 billion, marking a 15% surge since September. The cumulative inflows over the past month amount to $179 million, reflecting a promising shift for the year.
With an impressive contribution of $55.3 million, which accounts for roughly 83.7%, Bitcoin has outperformed other assets. Meanwhile, short Bitcoin positions reported a net increase of $1.7 million.
The earlier report indicated Bitcoin inflows of $16 million. Short Bitcoin positions remained steady this week. Additionally, speculations have arisen that the SEC’s choice not to contest Grayscale’s ruling might influence Bitcoin’s short-term price movement.
Solana lead altcoin for another week
For yet another week, Solana (SOL) has maintained its position as the top pick among institutional investors within the altcoin domain, registering $15.5 million in inflows. This surge pushes its year-to-date (YTD) inflows to a remarkable $74 million, leading the pack in the altcoin sector.
Accounting for 23.4% of the weekly inflows and holding 47% of assets under management, Solana stands out as the next most favored asset right after Bitcoin, accumulating a total of $43 million over the month.
With Ethereum (ETH) facing a string of outflows, there’s rising speculation about whether the altcoin, often dubbed the ‘ETH killer,’ might eventually overshadow its predecessor.
Ethereum, the foremost altcoin, hasn’t had a good month, experiencing continuous outflows. The asset reported a drain of $7.4 million last week, closely following the prior week’s outflow of $7.5 million.
Spot BTC ETF markup gains
This year has witnessed a surge in institutional interest driven by developments surrounding the potential approval of a spot BTC ETF.
A number of institutions have outlined their strategies and expectations for a possible approval, basing their projections on the SEC’s decision to refrain from contesting the Grayscale verdict, combined with recent modifications to applications by major players like BlackRock, Fidelity Digital, and Ark Invest.
However, a deep dive into the market dynamics reveals that the current wave of investments, spurred by this rejuvenated push for a spot BTC ETF, hasn’t reached the heights of June when several spot BTC ETF applications were under consideration. This suggests a “more measured approach by investors during this period,” as pointed out by James Butterfill.
While last month’s inflows totaled $179 million, the inflows during June were notably higher at $807 million. Examining the data from a geographical perspective, Europe outpaced the United States in investments, with Switzerland and Germany leading the way, recording inflows of $45 million and $10 million respectively.