$224M Invested in Crypto Funds Amid Bitcoin Outflow Concerns

Last week witnessed a remarkable surge in capital for crypto asset investment products, with a notable addition of $224 million in net new investments. This influx is documented in the latest report by CoinShares. This trend marks a significant seventh consecutive week of positive inflows, totaling an impressive $11 billion during this time frame.

However, despite this optimistic monetary flow, investor sentiment appears to be tinged with caution compared to earlier weeks. James Butterfill, Head of Research at CoinShares, remarked on the increasing uncertainty surrounding the U.S. Federal Reserve’s forthcoming decisions regarding interest rates, which has resulted in a more reserved stance among crypto investors.

$224M Invested In Crypto Funds Amid Bitcoin Outflow Concerns

With no definitive signal on whether the Fed will adjust or maintain rates, many investors are choosing to keep their capital on the sidelines, awaiting clearer macroeconomic indicators.

Ethereum Leads Investment Trends; Bitcoin Faces Setbacks

Ethereum has positioned itself as the standout performer in the investment landscape, drawing in $296.4 million in new contributions over the past week. This brings its cumulative inflow for seven weeks to approximately $1.5 billion, accounting for nearly 10.5% of the total assets under management (AUM) in Ethereum-related investment products.

This sustained inflow is the most significant since the 2020 U.S. elections, indicating a rekindling of investor confidence in Ethereum as a viable asset.

In stark contrast, Bitcoin has experienced net outflows for the second successive week, with a reduction of $56.5 million. These outflows were reflected in short-Bitcoin investment products, marking a pattern of redemptions that continues to unfold.

Market caution appears to be a prevailing theme, especially as Bitcoin struggles to maintain stability beyond the $105,000 threshold in recent trading sessions. The outflows may indicate a shift by traders moving assets away from Bitcoin towards Ethereum or a broader reduction in crypto exposure leaning on macroeconomic hesitations.

Geographic Trends and Altcoin Overview

The United States dominated the regional breakdown of net inflows, contributing a substantial $175 million. Other noteworthy contributors included Germany ($47.8 million), Switzerland ($15.7 million), Canada ($9.8 million), and Australia ($6.5 million).

Crypto Asset Fund Flows By Region.

Conversely, Brazil and Hong Kong saw outflows of $9.2 million and $14.6 million, respectively. The drop in Hong Kong’s investment is particularly striking, ending a recent wave of record inflows that had been spurred by the launch of new spot crypto ETFs.

In the altcoin sector, there was a notable quietness. Sui managed to accumulate a modest $1.1 million in inflows, while XRP continued to struggle with outflows amounting to $6.6 million, marking its third consecutive week of decline.

Although these fluctuations appear relatively minor in dollar terms, they emphasize a prevailing sentiment of uncertainty in the altcoin market during the ongoing consolidation period.

Image sourced through DALL-E, Chart provided by TradingView

Emily Walker
Crypto News Editor

Emily brings structure, clarity, and journalistic integrity to Bitrabo’s daily news coverage. With years of experience in tech journalism, she ensures that every headline, update, and developing story is accurate and impactful. From breaking regulatory news to market movements, Emily’s editorial oversight keeps Bitrabo’s news content timely, trusted, and engaging.