Bitcoin Unable to Attract Funds, Altcoins Recording Inflows with Ether’s Competitor Seeing the Largest
After six weeks of consecutive outflows, cryptocurrency investment products finally recorded their first inflow of $21 million, indicating improved sentiment, according to CoinShares data.
However, Bitcoin continues to see outflows, recording its 7th straight week of Outflows totaling $2.8 million, being the only digital asset to have outlaws last week. It now matches the run seen in January 2018, but while this may suggest sentiment remains negative, it still masks very mixed flows across providers.
This has been even though, over the weekend, Bitcoin finally hit $50,000 after three months.
Meanwhile, the positive price action over the recent weeks with Ether also above $3,300 and the total market cap approaching an all-time high at $2.22 trillion has pushed the total assets under management (AUM) to its highest level since mid-May at $57.3 billion.
Ethereum saw minor inflows of $3.2 million last week, while its competitor Solana recorded the largest inflows of any digital assets at $7.1 million. SOL, the 10th largest cryptocurrency with a market cap of $22.4 billion, actually hit a new ATH over the past weekend.
Still, Solana’s YTD flows are just $9 million, and total AUM is only at $11 million compared to Ethereum’s $960 million inflows so far this year and AUM at $14.5 bln.
Flows across product providers have been mixed with those in North America and Europe posting inflows, while some are continuing to post outflows for the week.
While Grayscale had zero flows, CoinShares XBT, ETC issuance, and others recorded outflows. 21Shares, CoinShares Physical, 3iQ, Purpose, and Bitwise, meanwhile, all recorded inflows.
The fact that flows across products and product providers remain mixed, “we believe this indicates the beginning of a turn in sentiment for digital assets,” said CoinShares.