Cryptocurrency funds: positive turn in altcoins and interesting trends in bitcoin

Cryptocurrency funds: positive turn in altcoins and interesting trends in bitcoin

Cryptocurrency asset manager CoinShares recently published its weekly digital asset fund flows report, revealing important trends and sentiment among investors. After previous significant outflows, the cryptocurrency market appears to be experiencing a positive recovery in the past week.

In the past week, digital asset investment products saw a total inflow of $226 million, indicating that investors are beginning to show renewed interest. Bitcoin, as the leading cryptocurrency, continues to attract attention, attracting $195 million. On the flip side, however, investment products short bitcoin experienced their fourth straight week of outflows, this time to the tune of $2.5 million. The recent decline in the bitcoin price has reduced the total assets under management (AUM) in global bitcoin exchange-traded products (ETPs) to $114 billion, the lowest level since the last US election.

Altcoins on the rise: Ethereum, Solana and others

While bitcoin faces challenges, altcoin funds are experiencing a positive turnaround. After four weeks of continuous outflows, altcoins reached their first inflow in the last week, with $33 million worth of inflows. Ethereum led the trend with an inflow of $14.5 million, followed by Solana ($7.8 million), XRP ($4.8 million) and Sui ($4.0 million). This shift in investor sentiment signals a renewed interest in alternative cryptocurrencies.

Regional trends and market reactions

Geographically, all major regions have seen an influx of bitcoins. The United States led with an inflow of $204 million, followed by Switzerland and Germany, which contributed $14.7 million and $9.2 million respectively. In contrast, Hong Kong and Brazil saw small outflows totaling $2.1 million and $1.3 million, respectively.

Despite the overall positive trend, an outflow of $74 million was recorded last Friday. CoinShares attributes the phenomenon to investor reactions to stronger-than-expected data on U.S. core personal consumption expenditures, which reinforced concerns about the Federal Reserve's hawkish stance despite signs of a broader economic slowdown.

Overall, then, the latest CoinShares report suggests that the cryptocurrency market, despite its fluctuations, is showing signs of recovery and investors are once again becoming interested in a wide range of digital assets.

*This is not an investment recommendation.

Coingarage team