Global crypto investment products have boomed, recording $1.2 billion in revenue last week. This marks the third consecutive week of positive earnings and a significant change in market sentiment, as highlighted by the latest report from CoinShares, a leading digital asset investment company.
Coinshares pointed out that the increase in inflows reflects “investor confidence” in digital assets amid expectations of “ambiguous monetary policy” in the US. In addition, it is also seen as a reaction to developing “price pressure.”
According to CoinShares’ Head of Research, James Butterfill, this week’s positive performance is the biggest in the last ten weeks, with total assets under management increasing by 6.2%. The inflow was largely due to growing interest in Bitcoin-focused investment products.
Additionally, after weeks of underperformance, Ethereum-based investment funds recorded a resurgence, attracting weekly inflows and marking a change in investor sentiment for the asset.
Bitcoin Dominates Revenue As Spot ETF Approval Boosts Market
The main driver behind last week’s entry was Bitcoin, which accounted for $1.1 billion in global revenue.
According to Butterfill, the approval of the listing and options trading of the BlackRock Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC) has contributed significantly to the market’s optimism.
The Head of Research at CoinShares pointed out that this regulatory improvement sets a positive tone for investors, although trading volumes saw a slight decline, down 3.1% compared to the previous week.
In the meantime. US-based investment funds contributed the most to inflows, with Bitcoin ETFs making up the majority. US-based funds generated a net inflow of $1.2 billion, the majority of which – $1.1 billion – came from products focused on Bitcoin.
In addition, the Swiss-based crypto-currency earned $84 million in revenue. However, this positive trend was not uniform across regions, as funds in Germany and Brazil experienced net outflows of $21 million and $3 million, respectively.
The week also saw a different movement in short Bitcoin investment products, which recorded a net inflow of $8.8 million amid the rising Bitcoin price.
Ethereum Sees Rebound, Solana Ends Great Streak
One of the notable developments was the reversal of a five-week negative trend in Ethereum-based investment products. These funds attracted a total inflow of $87 million worldwide, with US Ethereum Ethes contributing $85 million.
This marks Ethereum’s largest weekly inflow since August and suggests renewed confidence in the asset’s medium-term strength.
In contrast, Solana-based investment products ended their five-week streak of going all-in. Last week, $4.8 million was withdrawn from Solana funds worldwide.
Although Solana has seen a period of growth and positive sentiment, the reversal indicates that investors may be looking to shift their focus to more established assets such as Bitcoin and Ethereum in the short term.
The featured image was created with DALL-E, a Chart from TradngView