Weekly inflow of funds into crypto derivatives amid market correction amounted to $176 million
CoinShares analysts noted that investors saw the price decline as a buying opportunity
12.08.2024 - 12:30
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What’s new? Experts of the investment company CoinShares recorded an inflow of $176 million into cryptocurrency derivatives last week. They explained the positive result by the fact that investors viewed the recent decline in asset prices as a buying opportunity. Thus, trading activity in the cryptocurrency exchange-traded products (ETPs) sector was much higher than usual at $19 billion compared to the 2024 weekly average of $14 billion.
What else is known? At the same time, total assets under management of investment crypto products fell from $95 billion to $75 billion during the market correction, but then partially recovered to $85 billion.
What is unusual is that all regions of the world saw capital inflows last week. According to analysts, this indicates a positive attitude towards digital assets as a class. Most notable were the US, Switzerland, Brazil, and Canada, which recorded inflows of $89 million, $20 million, $19 million, and $12,6 million respectively. That said, the United States remains the only country to remain negative since the beginning of the month ($306 million in outflows).
CoinShares also said that the Ethereum (ETH) blockchain’s native coin benefited the most from the recent correction, with investment products based on it attracting $155 million in a week. This brings the total YTD inflows to $862 million, the best since 2021. This is largely due to the recent launch of ETH-based spot exchange-traded funds (ETFs) in the US. The regulator approved nine such products on July 23.
BlackRock’s ETH ETF has entered the top 15 in terms of inflows among new funds
The product was launched a week ago and has already raised over $600 million
As for bitcoin-based products, the week started with outflows for them, but there were significant inflows in recent days, resulting in a positive performance in the reporting period (+$13 million).
At the same time, short positions in the asset saw record outflows since May 2023 ($16 million), causing total assets under management for such products to fall to their lowest level since the beginning of the year.
Notably, in the week leading up to the large-scale correction of the crypto market, CoinShares recorded outflows from investment crypto products for the first time in a month, totaling $528 million.
During the correction on August 5, the BTC exchange rate dipped below $50 000 and ETH broke through the $2200 mark. Since then, the rates of the major cryptocurrencies have risen by about 20%.
Peter Schiff warns of massive liquidations of bitcoin ETFs and “a Crypto black Monday”
He believes bitcoin has been in a major bear market for nearly three years
Earlier, it became known that the volume of venture capital funding of crypto startups grew by 2,5% over the quarter and amounted to $2,7 billion.
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