2 - 4 minute read
The bullish trend in cryptocurrencies seems to be continuing as investors remain optimistic about crypto investments. For the fourth consecutive week, investors have poured money into digital asset investment products. Net inflows totaled $114 million, as reported by CoinShares data. Bitcoin-related products garnered the most new money ($104 million) while ethereum witnessed only $300,000 of net inflows last week.
The return of bitcoin above $30,000 has triggered a “flight to safety” by investors. The focus on bitcoin-related products comes as crypto investors fret over traditional finance’s ongoing worries. CoinShares has reported in their latest analysis that the four weeks’ worth of inflows now total $345 million, a considerable amount.
The Shanghai upgrade has led to Ethereum’s price surge to the $2000 level for the first time since August 2022. Despite this, the coin only witnessed net inflows of $300,000, a relatively small figure compared to bitcoin’s $104 million.
The CoinShares report also indicated that blockchain-related equities also received significant interest. There was a net inflow of $5.8 million, which pushed the total assets under management to $1.9 billion, the highest since October 2022.
The fourth successive week of positive flows to cryptocurrency investment is excellent news for traders. It has been a while since Bitcoin has performed this well, surpassing $30,000. Investors see this as a signal to invest in the cryptocurrency, and it has led to overwhelming positive inflows. As the shift to digital assets continues, it does not come as a surprise that blockchain-related equities are also gaining in popularity among investors.
The shift of focus towards bitcoin is evident, as the investment inflows towards the digital asset totaled $104 million, which is more than 90% of the total net inflows. Ethereum, which is the second-largest cryptocurrency capitalization, received significantly lower net flows, with only $300,000, despite the successful completion of the Shanghai upgrade, allowing the rise in prices above $2,000.
The Bottom Line
The consecutive week of positive crypto investment inflows is a signal of traders’ confidence in the market. Bitcoin’s value moving to beyond $30,000 has caused investors to flock to the asset in massive numbers. This trend is expected to continue even as blockchain-related equities gain more following. Nevertheless, traders should always perform due diligence for every investment they undertake. There are risks involved in cryptocurrency trading and other blockchain-related investments, and traders must weigh their decisions carefully to make the most out of the market’s opportunities.