- Crypto investment funds attracted hundreds of millions last week.
- The funds have made a turnaround after three weeks of consecutive net outflows.
- Experts believe the flow reversal is due to “weak prices” of digital assets.
Global crypto investment products recorded a significant inflow of funds in the first week of July, fueled by “weak” digital asset prices.
The funds have resumed a positive run following three weeks of consecutive net outflows, which started after a massive inflow of over $2 billion in the first week of June. CoinShares attributed the “unusually” high inflows to monetary policy rate cut expectations in the U.S.
Crypto Funds Rebound
According to a CoinShares report on July 8, digital asset investment products saw inflows totaling $441 million in the previous week. Bitcoin (BTC) accounted for 90% of the inflows as investors opted for a much broader set of altcoins.
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“Most notable of which was Solana, seeing US$16m last week, bringing year-to-date (YTD) inflows to US$57m, making it the best performing altcoin from a flows perspective. Ethereum sentiment seems to have turned, seeing US$10m inflows, but remains the only ETP to have seen net outflow YTD,” the report read.
CoinShares attributed the inflows to the “recent price weakness” across the crypto market prompted by Mt. Gox and the German government’s Bitcoin selling pressure, which can “likely be seen as a buying opportunity.”
Notable opportunistic buying was seen across various countries, including Hong Kong, Switzerland, and Canada, which accounted for $32 million, $24 million, and $12 million in inflows, respectively.
Per the report, the U.S. accounted for a bigger share of the inflows, totaling $384 million.
Stay updated on last week’s “crypto bloodbath”:
Crypto Bloodbath: Top Coins Tumble, Leaving Only One Survivor
Read about Metaplanet’s latest Bitcoin acquisition:
Metaplanet Bolsters Bitcoin Treasury with $1.2M BTC Acquisition
