Bitcoin has continued its bullish streak as digital asset management product inflows hit $114 million last week. The broader asset class has recorded a 4-week run of inflows now amounting to $345 million, according to the latest data shared by CoinShares report.
In the process, the market has fully corrected the previous 6-week run of outflows that totaled $408 million.
Bitcoin in the Frontline
The sole focus of investors was on Bitcoin, as evidenced by its inflows of $104 million. The improved sentiment was accompanied by low market volume. CoinShares cited “a flight to safety” by investors fearful of the current state of traditional finance.
However, opinions remain divided as short bitcoin also witnessed significant inflows of $14.6 million last week, the report argued.
Altcoins, on the other hand, showed little activity despite the successful launch of Ethereum’s Shapella upgrade. Ether inflows were constricted to just $0.3 million last week. A similar trend was seen across Litecoin, which recorded inflows of $0.2 million. During the same period, ADA and XRP saw inflows of $0.1 million each.
Solana and Polygon’s weekly outflows, on the other hand, reached $2.1 million each.
Meanwhile, inflows for blockchain equities have soared to levels not seen after the fateful collapse of Sam Bankman-Fried-led FTX. The latest data noted inflows of $5.8m last week, owing to the recent price appreciation that managed to catapult total assets under management close to $2 billion – the highest since October 2022.
US Regulatory Atmosphere
The United States agencies have increased scrutiny of the asset class. The Securities and Exchange Commission (SEC), as well as the Treasury, have explicitly targeted decentralized finance (DeFi). Despite this, inflows for digital asset investment products were seen across most geographies. However, the US dominated the chart with $58 million in the past week.
Trailing behind is Germany with inflows of $35.4 million, followed by Canada with $17.2 million, and Switzerland with $6.6 million.
Meanwhile, ProShares has emerged with the most significant inflow of $57.3 million. Trailing behind is CoinShares Physical with $11.3 million, followed by 3iQ with $10.4 million.