In the latest analysis of fund flows conducted by CoinShares, the realm of digital asset investment products witnessed a remarkable surge in inflows, totaling an impressive $932 million. This surge represents a staggering 716% increase compared to the preceding week’s influx of $130 million.
The pronounced uptick in inflows closely followed the release of a CPI report on Wednesday, which fell below market expectations. Notably, the final three trading days of the week accounted for 89% of the total inflows, signifying a renewed correlation between cryptocurrency prices and interest rate projections.
Bitcoin (BTC) emerged as the primary beneficiary of this surge, reaffirming its status as the premier cryptocurrency in the market. Bitcoin exchange-traded funds (ETFs) witnessed substantial inflows amounting to $942 million over the course of the week.
The absence of significant interest in short positions on BTC hints at a favorable investor sentiment. To date, Bitcoin investment products have amassed a noteworthy $13.85 billion in inflows since the commencement of the year.
Cardano Seizes Spotlight:
Amidst the flurry of activity, Cardano (ADA) made notable strides into the limelight. While it recorded no inflows in the previous week, it amassed nearly $2 million in inflows this week. This surge brings the total investment in Cardano Exchange-Traded Products (ETPs) to $10 million for the year, indicative of a burgeoning investor interest in this asset.
Conversely, Ethereum encountered challenges, grappling with outflows amounting to $23 million. This bearish sentiment is intricately linked to uncertainties surrounding the Securities and Exchange Commission’s (SEC) approval of a spot exchange-traded fund (ETF), prompting a cautious approach among investors.
Confidence in Bitcoin and Cardano:
The substantial inflows into Bitcoin and Cardano during the preceding week underscore a growing investor confidence in these digital assets. Despite the inherent volatility within the market, the resounding support for these cryptocurrencies reflects a maturing outlook among investors towards the digital asset landscape.
