CoinShares’ latest investment report indicates a significant surge of investment in the cryptocurrency market. In the span of a week, a total of $78 million was poured into the sector, marking the second consecutive week of positive inflows. This amount is almost four times higher than the previous week, which recorded $21 million in investment. Additionally, this week’s inflows were the highest since July of this year.
Bitcoin seems to be the main beneficiary of this investment surge, as it received a total of $43 million in inflows. However, some investors also saw the recent price strength as an opportunity to add to short-Bitcoin positions, resulting in $1.2 million in inflows in this regard.
The report also highlights a significant increase in trading volumes for crypto-related exchange-traded products (ETPs), which reached $1.13 billion. Bitcoin trading volumes on listed cryptocurrency exchanges also saw a notable uptick of 16%.
It’s interesting to note that Europe accounted for 90% of the total inflows, while the United States and Canada received only $9 million combined. This regional divergence in investment sentiment has been a consistent trend, with CoinShares previously citing the adverse regulatory climate in the U.S. as a contributing factor.
In terms of Ethereum (ETH) investment, the debut of Ethereum futures-based exchange-traded funds (ETFs) in the U.S. garnered modest interest. During the first week, these ETFs saw inflows of just under $10 million. This response is in stark contrast to the launch of Bitcoin futures-based ETFs in October 2021, which attracted a staggering $1 billion in the same timeframe. The report attributes this “tepid appetite” to the current low investor interest in digital assets, as it’s unfair to compare it to the high demand for Bitcoin ETFs at the time.
On the other hand, Solana (SOL) experienced a substantial surge in inflows, with its most significant weekly inflow of $23.9 million since March 2022. Solana continues to assert itself as the preferred altcoin and further established its position last week when its total value locked in the DeFi space reached a new all-time high of over $338 million.
Overall, the CoinShares investment report reflects a positive trend in the cryptocurrency market, with increased investment activity and trading volumes. While Bitcoin remains the dominant player, altcoins like Solana are also seeing significant inflows and gaining investor attention.