A recent CoinShares Research report reveals that crypto-focused investment products saw a staggering $1.44 billion inflow last week, marking the fifth-largest weekly inflow on record. This surge has brought the total inflows for the year to an impressive $17.8 billion. Notably, the United States, Switzerland, Hong Kong, and Canada contributed significantly to these inflows, with Bitcoin and Ethereum being the primary beneficiaries.
Why Are Investors Increasing Crypto Inflows?
The recent influx in crypto investments has occurred despite a downturn in prices, driven by strategic acquisitions. Last week, the United States led with a notable $1.3 billion of the total inflow. Switzerland set new annual inflow records, while Hong Kong and Canada attracted $58 million and $55 million, respectively, showcasing heightened investor interest.
How Are Bitcoin and Ethereum Performing?
Bitcoin received $1.35 billion, marking its fifth-largest weekly inflow in history. However, short-focused Bitcoin positions saw an outflow of $8.6 million. Analysts link these trends to investor sentiment shifts following sales by the German government and the release of US CPI data. Ethereum also witnessed its highest weekly inflow since March, with $72 million, driven by expectations of a spot-based ETF approval in the US.
Key Investor Takeaways
– The United States is leading in crypto inflows, reflecting strong investor confidence.
– Switzerland, Hong Kong, and Canada are seeing rising interest, breaking previous records.
– Bitcoin and Ethereum remain top choices, with substantial weekly inflows.
– Institutional and individual investors are strategically positioning amid market fluctuations.
Altcoins like Solana, Avalanche, and Chainlink also garnered attention, with inflows of $4.4 million, $2 million, and $1.3 million, respectively. Despite market instability, the persistence of inflows amid price corrections highlights growing investor confidence. This positive sentiment is likely to persist, with Bitcoin starting the week on a strong note, trading at $62.87 at the time of this report.
