Bitcoin Inflows Hit $942 Million as Investor Confidence Grows: CoinShares

Digital asset investment products surged for the second consecutive week, reaching a total of $932 million. Despite an increase in inflows, the trading volume for the week was only $10.5 billion, significantly lower than the $40 billion recorded in March.

Notably, the influx of funds was largely prompted by the unexpected CPI report released on Wednesday. According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, 89% of the total flows occurred during the last three trading days of the week, essentially depicting that BTC prices have recoupled to interest rate expectations.

No Flows Into Short Bitcoin

Bitcoin investors were found to be not actively betting on a decline in its price, indicating a bullish outlook among market participants as short BTC investment products witnessed a meager $0.6 million in inflows. On the other hand, Bitcoin experienced weekly inflows of $942 million, as per CoinShares’s report.

Various altcoins also received inflows, with notable amounts going into Solana, Chainlink, and Cardano, amounting to $4.9 million, $3.7 million, and $1.9 million, respectively. Investment products dedicated to Litecoin also saw modest inflows of $0.5 million during the same period.

Ethereum seems to have defied the prevailing trend and faced negative sentiment due to concerns about the US Securities and Exchange Commission’s (SEC) approval of a spot-based ETF, resulting in outflows of $23 million over the past week.

Blockchain equities also faced a similar fate and continued to see outflows, with only six out of the twenty weeks this year recording inflows. There has been a total outflow of $512 million year-to-date (YTD).

US Dominates Digital Asset Inflows

The US led the way with $1.002 billion in inflows last week. This figure was effectively catapulted by Grayscale, which has faced $16.6 billion in outflows since the January ETF launch but saw its first positive inflows of $18 million.

Besides, Switzerland and Germany recorded modest inflows of $27 million and $4.2 million, respectively, while Hong Kong and Canada experienced outflows of $83 million and $17 million, respectively. Sweden also recorded weekly outflows of $5.9 million.