Weekly inflows into crypto derivatives totaled $441 million

What’s new? Analysts at the investment firm CoinShares have recorded the first weekly inflow of funds into cryptocurrency derivatives to the tune of $441 million after three consecutive weeks of outflows totaling more than $1,1 billion. CoinShares notes that the recent price drop caused by the Mt.Gox exchange and the German government was seen by many market participants as a buying opportunity.

CoinShares report

What else is known? In July, the Mt.Gox bitcoin exchange began returning bitcoins and Bitcoin Cash to customers, whose rates had increased many times since its bankruptcy in 2014. In turn, the German government began selling bitcoins confiscated as part of criminal investigations through several platforms. All this led to the BTC exchange rate falling below the psychologically important mark of $60 000 and overall has lost 9% since the beginning of the month.

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CoinShares analysts wrote that despite the renewed inflows, trading volumes of cryptocurrency-based exchange-traded products (ETPs) remained relatively low ($7,9 billion). This reflects the typical seasonal trend of lower volumes during the summer months, they said.

At the regional level, the bulk of inflows came from the United States ($384 million), although buying on the dip was seen in a wide range of countries. The most notable were Hong Kong, Switzerland, and Canada: $32, $24, and $12 million of inflows respectively. Germany stood out with an outflow of $23 million.

Bitcoin accounted for $398 million and only 90% of total inflows, as investors opted to invest in a much broader set of altcoins. Most notable were products based on the native token of the Solana (SOL) blockchain, they raised $16 million in a week and $57 million YTD, making SOL the most efficient altcoin in terms of flows.

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Analysts also note a change in traders’ attitudes towards Ethereum, products based on which have previously faced churn. This time, they have attracted $10 million, with ETH remaining the only asset to maintain net outflows since the beginning of the year.

Blockchain stocks also faced $8 million in outflows last week. The figure has already reached $556 million since the beginning of the year.