According to a recent CoinShares report, Bitcoin’s bullish trend continues as Bitcoin inflows reached $104 million last week.
Continued Increasing Inflow
This positive momentum has been sustained over the past four weeks, with total inflows amounting to $345 million across the broader asset class. Notably, Bitcoin has been the primary focus for investors, accounting for inflows of $104 million.
Despite the successful launch of Ethereum’s yield features (Shapella), inflows were limited, with just $0.3 million reported last week. However, we see continued improvement in the sentiment towards the digital asset class, with inflows seen across most geographies, predominantly in the US and Germany.
This shift in sentiment comes at a time of very low volumes in the Bitcoin market, averaging just $5.6 billion per day, significantly lower than the full-year average of $12 billion. It seems that investors are flocking to the relative safety of Bitcoin, given ongoing challenges in traditional finance.
Opinions on Bitcoin remain divided, with short positions seeing inflows totaling $14.6 million last week. Furthermore, there has been little activity in altcoins, except for Polygon, which saw $2.1 million in outflows last week.
On the other hand, blockchain equities experienced inflows of $5.8 million last week, with recent price appreciation pushing total assets under management to $1.9 billion – the highest since October 2022, pre-FTX.
In conclusion, the latest CoinShares report indicates that Bitcoin remains the preferred choice for investors, with digital asset management product inflows hitting $114 million last week.
The positive sentiment towards the broader asset class continues, with inflows across most geographies. However, given the ongoing challenges in traditional finance, investors seem to be seeking refuge in Bitcoin. Nevertheless, opinions remain divided, with short positions still prevalent. Meanwhile, blockchain equities have experienced a surge in inflows, reaching a high not seen since October 2022.
In addition to the surge in inflows for blockchain equities, the CoinShares report also indicates that gold experienced its first weekly inflows in seven weeks, with $300,000 added to its products. This suggests that investors may be seeking out traditional safe-haven assets alongside digital assets like Bitcoin.
Furthermore, the report also notes that the price of Bitcoin has been relatively stable over the past few weeks, with low volatility despite the bullish trend. This could indicate that investors are becoming more confident in the asset, leading to increased inflows and stability in its price.
Overall, while Bitcoin remains the primary focus for investors, there is a growing interest in blockchain equities and traditional safe-haven assets. As digital assets continue to gain mainstream acceptance, we can expect to see increased investment in the sector, with more institutional investors joining the fray.
However, it’s worth noting that the market remains highly volatile and unpredictable, with sudden swings in sentiment and price not uncommon. Therefore, investors should exercise caution and do their due diligence before investing in digital assets.
