Crypto Fund Weekly Inflows Hit $43M as Streak Realizes $1.8B

The assessment of the weekly investment flow in crypto-related products by CoinShares shows a sustained the eleventh consecutive inflow with a $43 million addition in the past week to realize a $1.8 billion injection in the period. 

A review of the crypto fund inflows tracked by CoinShares indicates another $43 million addition to the asset managers. As such, the latest publication outlines Bitwise, Grayscale, ProShares, and 21Shares benefiting from a $43 million injection. 

The CoinShares report illustrates that Bitcoin-affiliated funds took the lion’s share with $20 million in inflows, thereby adding to their $1.7 billion year-to-date. Nonetheless, CoinShares’ report showed the weekly inflows plummeted from the $176 million and $346 million realized in the past two weeks. 

The flows into Ether-based investment products sustain the turnaround with a $10 million addition. The inflow adds to the six-week streak that attempts to erode the $125 million year-to-date outflow.

Hong Kong Outlier Performance as Europe Retain Dominance

CoinShares research head James Butterfill reported that Solana- and Avalanche-based funds emerged as the firm favorites as they realized $3M and $2M in the week. 

A comparative review of regional performance shows Europe retaining its dominant footprint with $43 million in inflows. The US realized $14 million in inflows, with half targeting short positions.

Hong Kong’s pro-crypto stance has yet to pay off, with the region emerging as the principal outlier for the second week. It suffered a second consecutive week with $8 million piping, with Brazil suffering a $4.6 million outflow. 

Butterfill noted the significant spike of $8.6 million, affirming the investors’ preference for a short Bitcoin position. The investment strategist attributed the increment to the recent price rally and widespread perception of downside risks. The inflow to short positions of the lead crypto assed doubled the previous week’s short inflows. 

Perceived Risks Manifest in Bitcoin Dip 

The perceived widespread risks manifested early Monday, translating to over $94 million in liquidation in bitcoin positions across centralized exchanges. The longs dominated the liquidation at $85 million, marking a significant contribution to $360 million in liquidations witnessed across multiple platforms, as per CoinGlass data. 

Bitcoin suffered a 10% decline in the early Monday activity within some exchanges. Although Bitcoin would rebound to a test day high of $44,019.72, it ran out of steam to exchange hands at a day’s low of $40720.20, per CoinGecko data.

The preference for short positions appears informed by the potential decline in Bitcoin price, with the lead token by market capitalization priced at $41,006.21 at press time, representing a 6.48 decline in a day, though a mild 1.53% slide in the past week.

Bitcoin saw its 24-hour trading volume rise 181.90% to realize $35.283 billion, portraying increased market activity while its market cap dropped to $801.203 billion capitalization.

Bitcoin still trades at 40.84% from its all-time high of $69,044.77 on Nov 10, 2021. Despite the deep, Bitcoin’s 30-day run remains at 10.9% and 138.1% in 2023.

Blockchain Equities Inflows Rise Fuelled by Surging Stock Price

A review of the market performance in the week portrays mixed-bag results. Blockchain equities sustained the eight-week streak by registering the largest inflow in the week at $126 million. 

The previous week saw Bitcoin miners duo surge, with Core Scientific attaining 43.5%, edged closely by Bitfarms at 46.2%. The week saw Terawulf realize a significant gain at 20%, though dwarfed by the Argo Blockchain (31%) rally. 

A few miners emerged to the party as Cipher Mining suffered a 4.3% decline, closely followed by Hut 8 stock at 3.9%.

Further scrutiny into the previous week’s activity reveals that Coinbase and MicroStrategy stock ragged relative to the Bitcoin performance. Although the two firms’ stock has reaped from the Bitcoin rally, they pumped 1.5% and 5.1%, respectively, as the token rose by 6.6%.

Other notable losers of the crypto-related stocks include Bakkt at 3.8% and Galaxy at 1.62%. The Bitcoin mining hardware manufacturer Canaan witnessed the toughest week by nosediving by 19%.

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