According to CoinShares, digital asset investment products have seen net inflows for the third consecutive week, totaling $1.2 billion globally. James Butterfill, Head of Research at CoinShares, attributes the positive flows to continued expectations of dovish monetary policy in the U.S. While institutional money exited Solana (SOL) and Binance Coin (BNB), Bitcoin and five other altcoins experienced strong inflows.
Crypto Investment Products See Third Week of Net Inflows
As reported by The Bit Journal, last week was marked by volatility in the crypto market. However, data from CoinShares shows that global crypto funds managed by firms like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares saw net inflows for the third consecutive week, adding $1.2 billion. Butterfill noted that this represents the largest positive net inflows in 10 weeks. He explained, “The rise in assets under management, which increased by 6.2% last week, was driven by the ongoing expectations of dovish monetary policy in the U.S. and positive price momentum.”
U.S. Leads in Net Inflows
The U.S. led the charge, accounting for $1.2 billion of the global inflows, with spot Bitcoin ETFs alone bringing in $1.1 billion. Meanwhile, Swiss-based crypto investment products saw $84 million in net inflows. However, funds in Germany and Brazil recorded net outflows of $21 million and $3 million, respectively.
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SOL and BNB Outflows, Bitcoin and Altcoins Benefit
Bitcoin investment products were the primary beneficiaries, with global inflows of $1.1 billion. Short Bitcoin products also saw inflows of $8.8 million, even as Bitcoin gained 3.5% in value over the week. As of the time of writing, Bitcoin was trading at $63,590, down 2.99% over the past 24 hours.
Ethereum-based investment products contributed to the positive flows, with global funds adding $87 million, breaking a five-week negative streak. The U.S. spot Ethereum ETF accounted for $85 million of the inflows, marking the largest weekly net inflows since August.
In contrast, Solana (SOL) saw $4.8 million in outflows, ending its five-week positive inflow streak. Binance Coin (BNB) also experienced outflows. On the other hand, Litecoin (LTC), Ripple (XRP), Cardano (ADA), and Chainlink (LINK) recorded inflows, signaling renewed interest in these altcoins.
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