Digital asset investment products saw inflows totaling $137 million for the fourth consecutive week reported by CoinShares.
Last month’s combined inflow of $742 million represents the most extensive continuous inflow since late 2021.
This comes after a long period of outflows between mid-April and mid-June 2023, totaling more than $400 million. The reversal coincides with an increase in the price of Bitcoin and renewed optimism from several spot Bitcoin ETF filings in the US in June.
CoinShares reported that trading volumes for investment products will remain above the average of $1.4 billion per week in 2022, reaching $2.3 billion last week. Investment product volumes currently make up a larger share of total crypto volumes than usual, making up 11% of volumes last week versus just 2% on average.
Investment inflows were almost entirely focused on North America, with the US and Canada seeing inflows of $109 million and $28 million, respectively. Europe generally saw a small outflow, with the exception of a slight inflow in Switzerland.
Bitcoin dominated the inflow, taking in $140 million or 99% of the total inflow. This continues Bitcoin’s dominance in recent weeks, attracting 94-98% of inflows over the past month. Meanwhile, short Bitcoin products continue their outflows, now marking 12 consecutive weeks of outflows totaling $3.2 million. The recent price surge and continued outflows have caused assets under management for short bitcoin products to drop from an April peak of $198 million to just $55 million.
Despite recent price increases, Ethereum saw no accompanying inflows. It posted $2 million outflows last week and remains the asset with the most total outflows of the year so far. Among altcoins, inflows were small for Solana at $0.5 million, Polygon at $0.5 million, and Litecoin at $0.3 million. This comes after a brief wave of altcoin products in mid-June, which appears to have been only temporary.
The data indicates that institutional and accredited investors are steadily returning to Bitcoin investment vehicles. However, interest in altcoins remains relatively limited outside of a handful of majors like Ethereum. The crypto investment landscape continues to favor Bitcoin over competing digital assets.
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