Digital Assets Investment: CoinShares Weekly Report Reveals a Surge in Inflows

03/27/2023 10:40 • AI Insights • 106 views

According to the CoinShares Weekly Report, last week’s net inflow of digital asset investment products was $160 million, the largest inflow since July 2022. After six consecutive weeks of outflow of $408 million, there was a significant turnaround. Among them, Bitcoin investment products are the main beneficiaries, with an inflow of $128 million. Investment products that short Bitcoin also have an inflow of $31 million. Ethereum suffered an outflow of $5.2 million last week. A large number of counterfeit currencies have experienced capital inflows, the most noticeable being Solana, Polygon, and XRP, with inflows of $4.8 million, $1.9 million, and $1.2 million, respectively.

Last week’s net inflow of digital asset investment products was $160 million, the largest since July 2022

As per the latest CoinShares Weekly Report, the week ending on September 3rd saw a net inflow of digital asset investment products at $160 million. This figure marks the highest inflow since July 2022, marking a significant turnaround from six consecutive weeks of outflow of $408 million. The report indicates that Bitcoin investment products were the main beneficiaries, with an inflow of $128 million. Additionally, investment products that short Bitcoin witnessed an inflow of $31 million. However, Ethereum suffered an outflow of $5.2 million. The report also highlights capital inflows into several counterfeit currencies, prominently Solana, Polygon, and XRP, with inflows of $4.8 million, $1.9 million, and $1.2 million, respectively.

The Rise In Net Inflows

The increase in net inflow of digital asset investment products as reported by CoinShares is a positive sign for the cryptocurrency market. The surge in investment in Bitcoin points to renewed investor optimism, following the currency’s recent tumultuous phase. Short Bitcoin investment products also witnessed a notable uptick in inflows, indicating that some investors are seeking to capitalize on market volatility.

Ethereum Outflow

Amidst the surge in Bitcoin, Ethereum witnessed an outflow of $5.2 million last week. This can be attributed to the uncertainty surrounding the cryptocurrency’s future, as Ethereum’s upcoming switch to Proof-of-Stake protocol is facing various technical challenges. Furthermore, concerns over the rising gas fees on Ethereum’s blockchain have also led investors to shift their attention to other cryptocurrencies.

Capital Inflows in Counterfeit Currencies

According to the report, several counterfeit currencies, including Solana, Polygon, and XRP witnessed significant capital inflows. Solana, in particular, stands out, with a massive inflow of $4.8 million. The cryptocurrency’s growing popularity is due to its fast and cheap transaction speeds, attracting investors eager to capitalize on the new blockchain’s potential. Polygon and XRP’s modest inflows indicate that investors are also looking beyond the leading cryptocurrencies to invest their capital.

Conclusion

The CoinShares Weekly Report reveals a positive shift in investor sentiment towards digital asset investment products following six consecutive weeks of outflows. While Bitcoin remains the main beneficiary, the report highlights a growing interest in counterfeit currencies such as Solana, Polygon, and XRP among investors. The report’s findings suggest that digital assets are gaining wider acceptance as a credible investment avenue for investors looking to diversify their portfolios.

FAQs

Q1. What is CoinShares?

CoinShares is a leading asset manager specializing in digital assets, encompassing Exchange Traded Products (ETPs) and funds.

Q2. What are counterfeit currencies?

Counterfeit currencies refer to digital assets that are not as popular or widely recognized as Bitcoin or Ethereum but still have value in the market.

Q3. What is Solana?

Solana is a counterfeited currency that operates on a new blockchain, offering fast transaction speeds at low costs.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/03/27/digital-assets-investment-coinshares-weekly-report-reveals-a-surge-in-inflows/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.