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Bitcoin attracts $140 million in investments as cryptocurrency products reach $2.3 billion in weekly sales.
Digital asset investment products experienced a fourth consecutive week of inflows amounting to $137 million, according to CoinShares.
The total inflows for the past month reached $742 million, marking the most extensive uninterrupted inflows since late 2021.
This follows a prolonged period of outflows from mid-April to mid-June 2023, which exceeded $400 million. The shift corresponds with a rise in Bitcoin’s price and renewed enthusiasm stemming from several spot Bitcoin ETF applications in the U.S. in June.
CoinShares noted that trading volumes for investment products remain above the 2022 weekly average of $1.4 billion, reaching $2.3 billion in the past week. Currently, investment product volumes account for a larger portion of total crypto volumes than usual, representing 11% of volumes last week compared to an average of just 2%.
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The influx of investment was predominantly concentrated in North America, with the U.S. and Canada recording inflows of $109 million and $28 million, respectively. Europe experienced minor outflows overall, with the exception of slight inflows in Switzerland.
Bitcoin led the inflows, attracting $140 million or 99% of the total inflows. This trend continues Bitcoin’s dominance in recent weeks, drawing 94-98% of inflows over the past month. Conversely, short Bitcoin products have maintained a streak of outflows, now totaling 12 consecutive weeks with outflows of $3.2 million. The recent price increase and ongoing outflows have resulted in assets under management for short Bitcoin products declining from an April high of $198 million to just $55 million.
Despite recent price increases, Ethereum did not experience corresponding inflows. It recorded $2 million in outflows last week and continues to have the highest year-to-date outflows overall. Among altcoins, inflows were minimal for Solana at $0.5 million, Polygon at $0.5 million, and Litecoin at $0.3 million. This follows a brief spike in altcoin products in mid-June, which seems to have been only temporary.
The data suggests that institutional and accredited investors are gradually returning to Bitcoin investment vehicles. However, interest in altcoins remains relatively low outside of a few major assets like Ethereum. The crypto investment environment continues to favor Bitcoin over other digital assets.
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