July 24, 2023 at 15:28 GMTModified date: July 24, 2023 at 15:30 GMT
July 24, 2023 at 15:28 GMT

Investors favour Ethereum as Bitcoin sees $13m in outflows

The four-week inflows trend was broken as digital asset investment products saw minor outflows totalling $6.5million last week, according to CoinShares…

BTC and ETH. Pic: Unsplash

The four-week inflows trend was broken as digital asset investment products saw minor outflows totalling $6.5million last week. As per the weekly report published by CoinShares, a total of $742m had poured in over the prior four weeks.

Bitcoin took the lead the last week as it experienced $13m in outflows. Short Bitcoin investment products also saw outflows, that too for the 13th consecutive week, totalling $5.5m.

As per the report, short Bitcoin total assets under management (AUM) at its peak represented 1.3% of total Bitcoin investment products. This has now fallen to just 0.4%, coming out as the lowest level since June 2022.

Things turned around for the altcoin king Ethereum which saw $6.6m inflows, topping the leaderboard last week.

The second in line to have enjoyed inflows was XRP which showed signs of investor confidence following Ripple’s partial victory in its legal battle with the Securities and Exchange Commission (SEC).

As a result, XRP products saw another $2.6m in inflows, which now also accounted for 8% of current AUM at providers such as Grayscale, Bitwise and ProShares.

Solana, Uniswap and Polygon were the other assets that attracted minor inflows, which were $1.1m, $0.7m and $0.7m respectively.

Trading volumes last week were below the year weekly average at $1.2billion. The same in the prior week stood at $2.4bn.

Coming to regions, minor negative sentiment was primarily focussed on the North American market. This area was a witness to 99% of ($21m) outflows. Canada experienced the highest outflows worth $12.2m this week.

On the other hand, Switzerland and Germany took the lead in inflows as it saw $12m and $1.9m coming into the countries, respectively.

All of this happened when Bitcoin dropped to its lowest this month, pulling down a majority of the cryptocurrencies in the market along with it. Starting the new week in the red, it was seen trading at $29,006 at the time of press, down by almost 3% daily.

The shift in the market sentiment happened as traders look ahead to the Federal Reserve’s monetary-policy decision this week. Bitcoin particularly stood very close to its two key psychological levels: $25,000 and $20,000. While the king coin seemed to find support at $29k, much resistance was seen around $31k and $32k on the other side.