Most major Crypto products tracked by CoinShares exhibited positive performance.
Following a month-long slump in cryptocurrency prices, digital asset investment products finally saw a return of investor money, marking the first positive inflow in a month. CoinShares International data reveals a positive shift in the crypto market. After a week of outflows totaling US$39 million, digital asset investment products saw a significant turnaround, attracting US$441 million in inflows during the week ending July 5th.
Bucking the recent downtrend, Bitcoin investment products emerged as the frontrunners, attracting nearly US$400 million in inflows during the week ending July 5th. This marks a significant reversal from the preceding three weeks, where products tied to the world’s leading cryptocurrency hemorrhaged over US$1.2 billion. This surge in investor interest coincided with a week where Bitcoin’s price took a temporary tumble, briefly reaching US$54,000 – its lowest point since February. This price dip appears not to have deterred investors, but may have instead presented an attractive buying opportunity, leading to the substantial inflows witnessed.
Delving deeper into the Bitcoin investment landscape, funds offered by Fidelity and ProShares emerged as the top performers, raking in a combined US$300 million. Fidelity’s Bitcoin product attracted roughly US$200 million, while ProShares’ offering secured approximately US$100 million.
However, not all Bitcoin funds shared this positive sentiment. Grayscale’s industry-leading Bitcoin trust fund remained in negative territory, experiencing outflows of around US$90 million during the week. This divergence in performance highlights the selective nature of the recent inflows, suggesting that investors may be favoring certain providers or strategies within the Bitcoin investment space.
Solana-based investment products took the runner-up spot, experiencing a meteoric rise in inflows. They secured over US$16 million, a staggering 900% increase compared to the previous week. This surge in investor interest for Solana comes on the heels of a recent development – asset manager VanEck’s application to the US Securities and Exchange Commission (SEC) for a Solana-backed exchange-traded fund (ETF).
While the potential approval of this ETF remains a long shot, as suggested by Bloomberg Intelligence analyst James Seyffart, it has undeniably sparked enthusiasm among investors. The significant jump in inflows for Solana funds suggests that some investors may be positioning themselves for potential future growth in the Solana ecosystem, regardless of the immediate outcome of the ETF application.
While Bitcoin dominated the inflow narrative, Ether funds also saw a flicker of investor interest. They attracted approximately US$10 million, with the Ether Strategy ETF emerging as the top performer within this category, garnering roughly US$6 million in inflows. However, it’s important to note that despite this positive week, Ether-based products are still facing annual outflows. The year-to-date figure sits at around US$15 million, indicating a cautious sentiment towards Ether compared to the recent surge in Bitcoin inflows. This contrast could be attributed to a number of factors, such as the ongoing developments surrounding Ethereum’s upgrade or potential differences in investor risk appetites between the two leading cryptocurrencies.
