Crypto-based investment products experienced a substantial inflow of $1.35 billion last week, bringing the three-week total to $3.2 billion. Bitcoin led the surge with $1.27 billion in new investments. Ethereum also showed strong performance, receiving an additional $45 million, surpassing Solana as the altcoin with the highest inflow this year.
Institutional Trading Trends
ETP trading volumes saw a notable uptick, climbing 45% from the previous week to $12.9 billion. However, this figure was still 22% lower than the usual broader crypto market volumes. Regionally, the US and Switzerland were major contributors, with inflows of $1.3 billion and $66 million, respectively. Conversely, Brazil and Hong Kong saw modest outflows of $5.2 million and $1.9 million.
Bitcoin and Altcoin Momentum
Bitcoin continued to dominate with $1.27 billion in inflows last week. In contrast, short-focused Bitcoin ETPs experienced an outflow of $1.9 million, contributing to a cumulative outflow of $44 million since March. This trend underscores the ongoing positive sentiment since Bitcoin’s halving event in April.
Solana garnered $9.6 million in inflows last week but remains behind Ethereum, which has accumulated $71 million in inflows this year. Litecoin also performed well, attracting $2.2 million in inflows, making it the only other altcoin to surpass the $1 million mark last week.
Key Takeaways for Investors
Investors can draw several valuable insights from these trends:
- Bitcoin continues to be a leading investment choice.
- Ethereum remains a strong contender among altcoins.
- Short-focused Bitcoin ETPs are seeing declining interest.
- Geographical variations are significant, with the US and Switzerland leading in inflows.
- Blockchain-based stocks are struggling compared to crypto tokens.
In summary, the crypto market is seeing substantial investment inflows, particularly in Bitcoin and Ethereum, signaling strong investor confidence. However, regional and product-specific variations indicate the need for a targeted investment approach.