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- Encouraging news for the world’s second-largest cryptocurrency Ethereum
- Digital-asset funds saw an influx of capital over the past two weeks.
- Bitcoin investment products saw an outflow worth $10.4 million last week.
The cryptocurrency market has been in a state of limbo, perhaps traumatized by the crash in values of more than $100 Billion. Since May 2021, cryptocurrency sentiments have always been negative. The latest negative trend is also affecting the rate of weekly inflows in cryptocurrency investment products.
As per data from a digital asset weekly fund flows report published by CoinShares, Bitcoin investment products saw an outflow worth $10.4 million last week.
Encouraging news for cryptocurrency Ethereum
However, there is encouraging news for the world’s second-largest cryptocurrency Ethereum. The platform has seen substantial inflows in the past week. ETH investment products saw inflows worth $11.7 million in the last week. Furthermore, Ethereum investment products in the first six months of 2021 attracted approximately $1 billion worth of inflows.
Digital-asset funds saw an inflow of capital over the past two weeks. However, the crypto crash of May has made the investor extra cautious, and he is treading slowly. Nevertheless, investors seem to warm up to Ether which is seeing a third consecutive week of inflows totaling $11.7 million, according to a report by CoinShares.
The week ending July 9 saw net inflows to digital asset funds totaling $2.9 million. However, it is less than the earlier week, which had seen a net influx of $4 million. Fund flows seem to be weakening after a brief period of strong investor demand during bitcoin’s rally.
The report continued and said that after a few weeks of inflows, the number one crypto token is seeing outflows for two weeks in succession totaling US$10.4m. However, these outflows are significantly smaller when compared to the deluge of outflows witnessed in May and June this year. Coinshares’ report also said that the launch of some investment products where investors gained market access for the first time has led to recent profit-taking rounds. It becomes clear when we see the diverse nature of inflows and outflows across different providers.
Last week saw the net inflows reach $2.9 million. However, in the second week of July 2021, the crypto trade saw net outflows worth nearly $4 million.
Cryptocurrency Assets remain in a calm zone.
Last week saw minor inflows in other cryptocurrency assets, including Polkadot, Cardano, Stellar, and XRP. It was a non happening week for the rest of the altcoins, with Ripple, Polkadot, Multi-asset, Cardano, and Stellar having inflows that were trivial and in the range of were less than US$0.5 million each. Volumes in Bitcoin tanked by 38% in the year-to-date average totaling US$3.9 billion per day last week. It was not a significant quake causing event since such seasonal dips in volumes have been seen in the summer months in recent years
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
