According to a recent report published by CoinShares this week, the digital asset market (crypto) saw the single largest weekly inflows since July 2022 (reaching a total of $199M).
Coinshares notes that these crypto inflows have cancelled out over half of the previous Nine (9) consecutive weeks of outflows, and things appear to be getting better for the crypto market.
Coinshares notes that Bitcoin was the biggest winner, of this asset class with a whopping $187 million in inflows last week, which cancelled out about 94% of its overall flows.
Short-bitcoin outflows, on the other hand, were US$4.9 million on Bitcoin for the 9th week in a row.
However, as impressive as Bitcoin's performance is, Coinshares noted that this shift in mood did not reach the altcoins, which saw relatively tiny inflows.
COinshares thinks so.
Recall that earlier this month, Blackrock, the world's largest asset management company (and several others), filed for a new Bitcoin ETF with the US Securities and Exchange Commission.
This ETF is intended to provide investors with exposure to BTC without requiring them to acquire it directly and was a very big deal when the news broke.
While the ETF application has not been approved, you should know that If BlackRock enters the Bitcoin market effectively, it can serve as a trigger for a Bitcoin boom.
Coinshares noted that the recent announcements from BlackRock and other high-profile ETP issuers who have also registered for ETFs may have contributed to this increased optimism on Bitcoin.
Coinshares mentioned that the total assets under management (AuM) are presently at US$37 billion (the highest level since before 3 Arrows Capital's collapse) and that ETP (Exchange-traded products) trading volumes were 170% more than the year's average, totalling US$2.5 billion for the week.
Coinshares highlighted that the altcoins were nowhere near Bitcoin in terms of inflows.
Ethereum, for example, witnessed inflows of $7.8 million, or only 0.1% of AuM, compared to Bitcoin's inflows of 0.7%. This indicates that the demand for Ethereum is now smaller than for Bitcoin.
Solana and XRP were no different, with relatively tiny inflows of US$0.24m and US$0.17m respectively.
However, the improving attitude prompted some investors to purchase multi-asset investing ETPs, with US$8 million inflows last week.
According to the Coinshares report, BTCE, the Bitcoin exchange-traded product from London-based ETC Issuance GmbH, surpassed weekly inflows with $77.3 million.
ProShares' Bitcoin Strategy ETF (BITO) also had the most inflows in the United States, totalling $60.4 million.
In a tweet this morning, Eric Balchunas, a senior ETF analyst for Bloomberg, stated that the Bitcoin Futures ETF $BITO saw its largest weekly inflow in a year, as assets surpassed $1 billion once more.
Balchunas also noted that It also exchanged $500 million in shares on Friday, something it has only done around 5 times previously.
As mentioned earlier, CoinShares analyst James Butterfill also mentioned that the "renewed positive sentiment" may be due to a recent rush for spot Bitcoin ETFs.
And just like BlackRock, Valkyrie, WisdomTree, and Invesco have also filed for these ETFs within a week from one another, with the US Securities and Exchange Commission.
In conclusion, the future of Bitcoin and the altcoins will be an interesting one to watch, and who knows what might come next, a week, a month or a year from now.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.