The global crypto investment market has witnessed a significant inflow of capital, with recent reports indicating a continued positive trend in inflows. According to the latest data CoinShares’ digital asset investment products saw an additional $1.35 billion in net inflows last week.
This latest injection of funds brings the total for the current positive phase to $3.2 billion. The fact that money has been flowing at this level is a testament to the amount of steam behind the recent market sentiment and confidence among investors towards cryptocurrencies.
According to Coinshares, this inflow trend is not isolated to a specific cryptocurrency, but is quite widespread across multiple digital assets.
The report reveals that major asset managers such as Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares, and 21Shares reported substantial inflows.
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Which crypto asset led the charge?
Unsurprisingly, the majority of investment still flows into Bitcoin, with decent contributions from Ethereum and other altcoins.
According to the report, Bitcoin saw around $1.27 billion in inflows last week, with short-term exchange-traded products (ETPs) recording an additional $1.9 million in outflows, bringing the outflows since March to $44 million.
Notably, the transaction volume stimulated thus far has contributed to a 45% week-over-week increase in ETP trading volumes, representing 22% of the broader crypto market’s total trading volumes.
Aside of Bitcoin’s continued dominance, Recent Ethereum Performance in relation to other altcoins was also noteworthy.
James Butterfill, head of research at CoinShares, noted a turning point in investor portfolio allocation, with Ethereum surpassing Solana in net inflows year-to-date. Butterfill noted:
The outlook for Ethereum appears to have changed, seeing another $45 million in inflows last week, surpassing Solana for the altcoin with the most inflows year-to-date (YTD) at $103 million. Solana also saw inflows last week totaling $9.6 million, but now trails Ethereum with $71 million in inflows year-to-date.
This shift could be seen as important as it suggests a larger market rotation where investors may be realigning their portfolios with Ethereum as it continues to see potential strong long-term growth prospects such as upcoming launch of its spot exchange-traded funds (ETFs).
Furthermore, investment flows also varied significantly across regions. While the US and Switzerland topped the table by a margin, only small net outflows were recorded from Brazil and Hong Kong.
![Last Week’s Crypto Inflows Soared to $1.35 Billion: Which Digital Asset Led the Charge? 1 Crypto asset fund flows by region](https://thegurumedia.com/wp-content/uploads/2024/07/Screenshot-2024-07-22-at-16.05.04.png)
Market performance last week
While crypto market fund flows were positive last week, the overall market price performance also seems to have reflected this positivity. Last week, the global crypto market valuation increased from $2.4 trillion to $2.6 trillion.
This surge comes against the backdrop of a remarkable recovery in Bitcoin, which has seen its price trade as high as above $68,000 earlier today, before now trading below $67,000 at the time of writing.
Ethereum and Solana, on the other hand, have also managed a price recovery, just like Bitcoin. Interestingly, while Ethereum seems to be overtaking Solana in fund inflows, SOL refuses to accept defeat in terms of price performance.
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In particular, according to the data, between these two assets, SOL gained the most last week, with a 16.8% increase, a significant difference compared to ETH’s increase of just 2.6% in the same period.
Featured image created with DALL-E, chart from TradingView