Crypto Products Record Inflows for the 5th Straight Week; Bitcoin, Ether, and Solana Account for Over 64% of It
For the fifth consecutive week now, cryptocurrency investment products and funds have been recording inflows, according to the data from digital asset manager CoinShares.
Inflows for the week ended Sept. 17 amounted to $41.6 million, and this time the bulk of inflows were finally into Bitcoin at $15.3 million.
After suffering the most from negative sentiment, recording inflows in only three of the last 16 weeks, Bitcoin is seeing the interest return to it. Still, Bitcoin’s total market share of assets under management (AUM) has dropped from 81% in January to just 67% as of last Friday.
Overall, the leading cryptocurrencies’ inflows for the year amounted to $4.2 billion.
According to data provider Glassnode’s latest note, Bitcoin (BTC) is currently forming a “consolidation trading range.” After falling to $40,100 late on Monday, as of writing, Bitcoin is trading just above $42,600.
“This improved sentiment could be a seasonal phenomenon, but we are not seeing a commensurate rise in volumes in investment products,” said James Butterfill, investment strategist at CoinShares.
According to Butterfill, these inflows suggest some investors are taking advantage of recent weakness in price and the continued rise in altcoin popularity.
Multi-asset investment products meanwhile saw unremarkable inflows of $3.7 million. But Solana (SOL) continued to gain traction. Despite the blockchain suffering a network outage caused by a DDoS attack, it saw inflows for $4.8 million — bringing its YTD flows to 4th highest at $79 million and fifth highest in total AUM at $85 million.
“This suggests investors were happy to shrug-off the attack, seeing it as teething problems rather than something more inherent with the network,” noted the report.
Grayscale also finally saw $500k in inflows, the first for the month but remained the largest crypto asset manager, with $43.2 billion in AUM, up from about $28.5 billion around mid-to early August.
CoinShares, meanwhile, is the second biggest digital asset manager with $4.2 billion in AUM. Purpose, which launched the first bitcoin ETF of North America, was the only one with net outflows of $8.3 million.
This article is Originally posted on CoinCentral.com