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Crypto Fund Inflows Follow Pickup in Market Sentiment
Inflows into digital-asset funds last week were 4.5 times what they were the week before.
Updated May 11, 2023, 5:03 p.m. Published Feb 7, 2022, 6:33 p.m.
Inflows into crypto funds quadrupled last week, a sign of positive sentiment among investors as bitcoin's price climbed back above $40,000.
Crypto funds saw inflows of $85 million during the seven days through Friday, according to a report Monday from the digital-asset manager CoinShares. It was the third straight week of net inflows.
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The majority of the inflows come from the Americas, according to CoinShares. Brazil and Canada accounted for 88% of the total inflows last week.
Bitcoin (BTC) has partly recovered some of its steep losses from the first week of 2022, trading at around $43,887 at press time, up from $32,900 just a couple weeks ago. The price is still well off its all-time high of almost $69,000 in November.
About $71 million flowed into bitcoin-focused funds last week, the largest amount since early December.
Despite the overall bullish sentiment, Ethereum-focused funds saw outflows of $8.5 million, which was less than last week’s $26.8 million in outflows. Ether (ETH), Ethereum blockchain’s native cryptocurrency, was up 16% in the past five days, but is still down 2.2% compared with a month ago.
"Investment products flows for Ethereum suggest investors remain bearish," CoinShares wrote. This is the ninth straight week of outflows for Ethereum-focused funds.
Prior to the recent three-week streak of inflows, crypto funds had experienced $532 million in outflows over the prior five weeks.
Crypto funds focused on altcoins like solana, polkadot and cardano all saw inflows. Terra-focused funds saw their first significant inflows last week, totaling $1.4 million, which represented 26% of total assets under management, CoinShares wrote.
Binance coin (BNB) and Tron are two other assets that saw losses besides ether last week; BNB-focused funds had outflows of about $700,000, and Tron-focused funds had outflows of about $500,000.
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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
What to know:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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