Crypto Products Record $78 Million Inflows, Marks Highest Point Since July: Report
The digital asset market notches major growth as products see inflows totaling $78 million, its highest week since July.
A new CoinShares market report shows significant growth in the market this week following an increase in investor appetite for crypto products across several jurisdictions.
Per the report, crypto products recorded inflows for the second straight week after previous weeks of outflows caused by plunging market values and uncertain regulations in the United States.
Exchange-traded products (ETPs) also grew by 37% in the last seven days hitting $1.13 billion.
Bitcoin remains the biggest gainer
Bitcoin (BTC) recorded an inflow of $43 million along with short Bitcoin positions which saw gains of $1.2 million, after several weeks of outflows.
The last seven days have shown a massive jump as institutional investors continue to dabble in the crypto space.
Ethereum (ETH) on the other hand recorded a slight boost following the rollout of six exchange-traded funds (ETFs).
While the funds attracted a total of $10 million in its first week, when compared with Bitcoin’s massive $1 billion at the same time, it shows institutional investors are not as bullish on Ethereum as they were in 2021.
This can also be seen in the previous week’s ETH performance as the leading altcoin recorded outflows of $1.5 million marking negative results for seven consecutive weeks.
Solana (SOL) has remained institutional investor’s favorite in recent months and continued the fine run last week.
The altcoin recorded $24 million worth of inflows, its highest since March 2022. Solana has now tapped 27 straight weekly inflows with only four outflows this year, stamping its authority despite key ETH rollouts this week.
Solana trades at $22.22 down by 4% the day and over 30% in the last 12 months. The last seven days also saw Bitcoin volumes grow by 16% across trusted exchanges.
Last week, the total crypto market products turned the tide for the first time with $21 million in inflows after six consecutive weeks of outflows.
Europe outshines the United States
The last few weeks have seen US investors take a major setback as Europe records the highest numbers from crypto products.
Last week, 90% of inflows came from Europe while the United States and Canada scrambled for the rest totaling $9 million.
Germany and Switzerland led the pack as they accounted for $37.3 million and $31.3 million respectively making up 88% of total weekly inflows.
Europe has gained the upper hand over the United States following rule clarity while the US continues to stall regulations leading to several court cases involving the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and crypto firms.
⚖️📑 Grayscale Crypto Asset Management Firm Wins Lawsuit Against SEC@Grayscale won its highly anticipated case against the Securities and Exchange Commission over the latter’s rejection of the firm’s spot Bitcoin ETF application.#CryptoNews #Bitcoinhttps://t.co/X2UNno8cOU— Cryptonews.com (@cryptonews) August 29, 2023