Bitcoin Investment Products See Outflows as $ETH and $XRP Funds Attract Capital
In a surprising shift, Bitcoin (BTC) investment products saw $13 million of outflows over the past week, while investment products offering investors exposure to Ethereum ($ETH) and $XRP have both seen significant inflows.
According to CoinShares’ Digital Asset Fund Flows report, cryptocurrency investment products saw a net outflow of $6.5 million in a week, an unexpected downturn following four weeks of substantial inflows totaling $742 million.
This remarkable turnaround came as Bitcoin investors appeared to have exhausted their optimism after a series of major market catalysts in recent weeks that started with the world’s largest asset manager BlackRock filing an application on June 15 to list a spot Bitcoin exchange-traded fund (ETF) in the US, which ld to a flurry of financial behemoths making similar filings.
The market responded with a rapid influx of capital into Bitcoin-focused investment funds over the following month, marking the fastest pace of investment since October 2021.
Investment products focused on Ether saw the most significant inflows among all cryptocurrencies, amassing a total of $6.6 million. This uptick suggests a possible reversal in investor sentiment towards the second-largest digital asset, which has otherwise been underwhelming this year.
Moreover, XRP-focused funds recorded inflows of $2.6 million, which amounted to $6.8 million or 8% of all assets under management inflows, over the past 11 weeks. James Butterfill, head of research at CoinShares, commented that this trend suggests “investors are increasingly confident in the outlook for XRP.”
As reported, XRP has seen a sharp rise in investor engagement as open interest has recently hit a high that hadn’t been seen since the fall of 2021. Data shows that open interest topped $1.2 billion earlier this week.
Smaller altcoins like Solana’s $SOL, Uniswap’s $UNI, and Polygon’s $MATIC also saw positive fund flows of $1.1 million, $0.7 million, and $0.7 million, respectively.
Featured image via Unsplash.