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Cryptocurrencies have hit a record number of inflows globally, particularly in the US, according to the latest weekly report by CoinShares.James Butterfill, CoinShares’ head of research, says in the report that cryptos and other digital assets are now seeing their highest influx of funds in history:
Digital asset investment products saw continued positive sentiment with inflows totaling $646 million last week. Inflows [this] year-to-date at US$13.8 billion are at their highest ever level, now far surpassing the US$10.6bn seen in 2021.”
BTC still reigns
According to Butterfill, the lion’s share of these funds have come from – and continue to come from – Bitcoin:
Bitcoin remains the focus, seeing inflows totaling US$663m, while short-bitcoin investment products saw outflows for the 3rd week in a row totaling US$9.5m, suggesting minor capitulation amongst bearish investors.”
Ethereum on the way down, Solana and Litecoin on the way up?
Apart from the somewhat predictable outcome of Bitcoin as a frontrunner, the report shared several other interesting changes in crypto asset flows.Ethereum, for example, saw outflows of $22.5 million last week, representing the fourth consecutive week of outflows.This was in contrast to most other altcoins which continue to see inflows. Litecoin did particularly well, with $4.4 million in inflows, with Solana not far behind with inflows of approximately $4 million.
However, is the crypto party almost over?
Despite these encouraging numbers, Butterfill said that CoinShares had noticed indications of the trend potentially ebbing.
There are signs that appetite from ETF investors is moderating, not achieving the weekly flow levels seen in early March, while volumes last week declined to US$17.4bn for the week compared to US$43bn in the first week of March.”
Whether or not these figures will change in the coming weeks, with the upcoming Bitcoin halving, remains to be seen.More By This Author:S&P 500 Index Analysis As Money Market Funds Hits ATH
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