In its latest report, CoinShares showed significant inflows into Ethereum, Bitcoin, and other altcoins in the past week. Fund inflows, particularly into digital asset investment products, suggest positive market sentiment despite the recent price correction.
Last week, the digital asset investment product saw its fifth-largest weekly inflow ever recorded, totaling $1.44 billion, according to a CoinShares report. The surge brought inflows for the year to a staggering $17.8 billion, well above the $10.6 billion recorded in 2021.
However, despite this bountiful inflow, volume remained relatively low at $8.9 billion for the week, compared to this year's seven-day average of $21 billion. Bitcoin led the surge with $1.35 billion in inflows, marking one of the largest weekly inflows.
Conversely, the short-bitcoin product saw its biggest weekly outflow since April, with investors pulling out $8.6 million. The inflow into Bitcoin may stem from a mix of factors, including the sale of Bitcoin by the German government and a positive sentiment shift due to lower-than-expected CPI data in the United States.
Meanwhile, Ethereum followed with inflows of $72 million, the highest since March. The surge was attributed to the expected approval of the Spot Ethereum ETF in the United States. Other altcoins also saw significant inflows, with Solana, Avalanche, Chainlink, and XRP receiving $4.4 million, $2 million, $1.3 million, and $1 million, respectively.
The United States dominated inflows, accounting for $1.3 billion last week. However, the other side also showed bullish sentiment. Switzerland saw record inflows this year, while Hong Kong and Canada recorded $58 million and $55 million respectively.
CoinShares emphasizes that the recent price correction provides a buying opportunity for many investors. The large inflows into Bitcoin and other digital assets indicate strong confidence in the market's long-term potential. Moreover, this sentiment, combined with regulatory developments and macroeconomic factors, suggests a possible continuation of the bull market surge.
Investors seem optimistic about the future of the crypto market, especially with the upcoming approval of the Ethereum ETF this week. If this trend continues, it is likely to witness continued growth and innovation in the digital asset space. However, experts are of the view that market players should be wary of possible regulatory changes and market volatility. Meanwhile, some analysts also said that Bitcoin has reached its lowest level.
