Global ETP investors shift $126 million away from major cryptocurrencies, favor altcoins like Polkadot News ▸ Bitcoin · Ethereum · Polkadot ▸ Investments
Global ETP investors shift $126 million away from major cryptocurrencies, favor altcoins like Polkadot
Bitcoin was responsible for 87% of the total digital asset investment outflows last week.
2 min read
Updated: Jul. 8, 2024 at 11:41 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Digital asset investment products experienced a notable setback, with outflows reaching $126 million last week, according to CoinShares’ latest weekly report.
Bitcoin’s outflow accounted for a significant portion, representing 87% of the total net flow for the week. CoinShares Head of Research James Butterfill attributed this trend to investors’ cautious stance following the end of price momentum in the market.
He furthered that ETF/ETP trading activity declined compared to the broader market, with total volume reaching only 31% last week. Nonetheless, there was a slight week-on-week increase in volume from $17 billion to $21 billion.
Ethereum sees five straight weeks of outflow.
Several Bitcoin investment products, including Grayscale GBTC, ProShares BITO, and Purpose ETF, primarily drove the outflows, with their cumulative flows almost reaching $1 billion.
On the other hand, BlackRock IBIT, Fidelity FBTC, and Ark 21Shares ARKB’s inflows could only partially offset the outflows, leaving Bitcoin products with a total outflow of $110 million for the week.
Butterfill added:
“Regionally, the US saw the largest outflows totaling $145 million, while Switzerland and Canada followed with $5.7 million and $6 million outflow, respectively. Investors in Germany saw recent price weakness as an opportunity, seeing $29 million inflows last week.”
Meanwhile, Ethereum continued its negative trajectory with a fifth consecutive week of outflows totaling $28.7 million. Its month-to-date flow now stands at negative $51.3 million, with a year-to-date flow of only $23 million, signaling potential erosion of its gains for the year.
Joining Ethereum in negative territory, Solana saw outflows of $3.6 million, while multi-asset products recorded $5.6 million in outflows.
Interestingly, Short Bitcoin saw a reversal in its trend with $1.7 million in inflows after three consecutive weeks of outflows. This suggests a resurgence of bearish sentiment amid significant market volatility.
On a brighter note, several altcoins witnessed positive flows. Litecoin, XRP, and Polkadot attracted inflows of $1.6 million, $300,000, and $800,000, respectively. Even lesser-known altcoins like Decentraland, Basic Attention Token, and LIDO saw inflows of $4.9 million, $2.9 million, and $1.8 million, respectively.
Disclaimer: CryptoSlate has received a grant from the Polkadot Foundation to produce content about the Polkadot ecosystem. While the Foundation supports our coverage, we maintain full editorial independence and control over the content we publish.
Mentioned in this article
Bitcoin 
Ethereum 
Solana 
XRP 
Polkadot 
CoinShares 
BlackRock 
Grayscale Investments iShares Bitcoin Trust 
Grayscale Bitcoin Trust Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,338.19
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$257.004
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
XRP
$1.56266
The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Polkadot
$7.06277
Polkadot development is on track to deliver the most robust platform for security, scalability, and innovation.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
The BlackRock Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), is an investment fund that provides regulated exposure to Bitcoin for investors.
The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that provides investors with access to Bitcoin through traditional investment channels.