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09/07/24
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Digital Asset Investment Products Recorded Inflows of $441M Last Week
On July 8, CoinShares revealed that digital asset investment products recorded an aggregate inflow of $441 million last week. The report noted that exchange-traded products’ trading volumes were quite low for the week at $7.9 billion, “reflecting the typical seasonal pattern of lower volumes in the summer months.”
The participation rate during the week was 17 percent lower relative to the aggregate market for trusted exchanges. It was noted that the price weakness in recent times was due to selling pressure from Mt Gox and the German Government, which is likely considered an opportunity to buy more assets.
On July 5, Mt Gox reportedly moved more than 47,000 BTC to an unknown wallet address for repayment of its creditors. They started repaying the creditors on the same day in Bitcoin and Bitcoin Cash. The government of Germany moved 3,000 BTC to several crypto exchanges and an unknown wallet during the week.
All the crypto assets recorded inflows with Bitcoin seeing the $398 million, unusually representing 90 percent of the total inflows. Solana was the best-performing altcoin in terms of flows, recording an inflow of $16 million, making it an aggregate of $57 million inflow since the beginning of this year.
This was followed by Ethereum with inflows of $10.2 million, but still the only ETP to have seen net outflow since the beginning of the year. Litecoin, short Bitcoin and XRP saw inflows of $900k, $500k, and $400k, respectively. Investors poured funds into multi-coin investment products, leading to an inflow of $12.8 million.
In terms of region, the United States recorded the highest amount of inflow at $384 million, followed by Hong Kong, Switzerland, Canada, Brazil and Australia at $32.3 million, $23.8 million, $12 million, $11.3 million and $3.7 million, respectively. Germany and Sweden saw outflows of $22.7 million and $3.3 million, respectively.
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