Despite a number of uncertainties that have dotted the crypto horizon, recent data of Coinshares reveals a continued faith in the sector, especially in the largest crypto giant, bitcoin.
Digital asset investment products have seen a consistent and positive trend, recording net inflows for three weeks. Amidst these entries, bitcoin emerges as the most dominant, presenting a strong argument for its position in the market.
bitcoin leads the entry wave
According to the latest report from CoinShares, bitcoin-focused products saw inflows worth $16 million last week alone. This increase has increased receipts so far this year, placing them at $260 million. CoinShares data also sheds light on Short-bitcoin fund inflows, which amounted to $1.7 million.
However, the report reveals that recent data may not reflect the consequences of the SEC’s decision not to appeal Grayscale’s legal challenge. James Butterfill, head of research at CoinShares, noted:
It’s worth noting that our data, which is as of Friday’s close, is unlikely to capture the positive news from the US regarding the SEC’s failure to appeal Grayscale’s legal challenge, which could pave the way for path for a spot ETF in the US
While bitcoin held firm, other cryptocurrencies also showed notable movements. Solana investment products added approximately $3.7 million, building on $24 million the previous week.
XRP maintained the momentum, recording its 25th week of positive inflows with an additional $420,000. Butterfill highlighted the “investment community’s” continued support for XRP, especially in light of recent “successful legal challenges” against the US Securities and Exchange Commission (SEC).
However, it wasn’t all sunshine and roses. ethereum funds suffered a setback, with outflows of $7.4 million. This appeared to neutralize most inflows after the launch of six ethereum futures exchange-traded funds (ETFs) the previous week.
Butterfill pointed to possible “protocol design concerns” as a plausible reason. Other digital assets such as Litecoin, Chainlink, and Tezos also experienced minor outflows of $280,000, $310,000, and $250,000, respectively.
Global influx dynamics
Regarding the global distribution of these tickets, Germany stood out, which accounted for most of the week’s tickets with 16.1 million dollars. The United States and Canada followed suit, with receipts of $2.1 million and $3.5 million respectively.
Interestingly, Sweden was the only European nation to witness an outflow of $7.5 million. Butterfill states that despite this positive net inflow trend“Trading volumes remain 27% below the 2023 average.”
Regardless, bitcoin, which led last week’s influx, saw a dramatic turnaround in the past few hours. Specifically, the asset witnessed a rapid rise above $30,000, fueled by a baseless rumor from Cointelegraph that the US Securities and Exchange Commission (SEC) approved a btc spot ETF. The regulator discredited the rumors.
However, the cryptocurrency quickly retraced its steps once the rumor was debunked, particularly by a FOX Business reporter.
BlackRock just confirmed to me that this is false. Her application is still under review. https://t.co/XIfIWZ0Ule
-Eleanor Terrett (@EleanorTerrett) October 16, 2023
At the time of writing, bitcoin is trading at $28,049, still showing bullish behavior with a 4.3% increase in the last 24 hours.
Featured image from Unsplash, chart from TradingView
