Crypto Funds See Massive $441M Inflows as Bulls Fight Back

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After weeks of outflows, recent data reveals a positive change in crypto funds. According to information from CoinShares, these funds saw a massive $441 million inflow in the last week.

The recent inflow comes despite recent price volatility triggered from the Mt. Gox debacle and selling pressure from the German government.

Crypto Funds Records Massive Inflows

Per data from CoinShares, Bitcoin dominated the inflows with $398 million which accounts for 90% of the total investments. Other crypto assets also attracted significant investments.

However, Solana stood out among altcoins with SOL-linked products registering $16 million. This performance brings its year-to-date (YTD) inflows to $57 million.

In contrast, Ethereum saw only $10 million in inflows in the first week of July suggesting that the sentiment surrounding the asset seemed to have diminished despite securing initial approval of its exchange-traded funds (ETF) from the United States Securities and Exchange Commission (SEC).

CoinShares mentioned that despite the positive inflow, volumes in exchange-traded products (ETPs) remained remarkably low, currently standing at around $7.9 billion. This decline represents a 17% lower participation rate compared to the total market for trusted exchanges.

Meanwhile, CoinShares attributed the market performance in terms of inflows to strong buying sentiment among investors who view the recent price weakness linked to defunct crypto exchange Mt. Gox and the selling pressure from the German government as a strategic buying opportunity to increase their crypto holdings.

However, this sentiment was not mirrored in blockchain equities, which experienced outflows of $8 million last week, bringing the year-to-date outflows to $556 million.

United States Leads in Terms of Inflows

In terms of regional performance, the United States took the lead with $384 million generated.

However, there was also opportunistic buying in different nations worldwide, with Hong Kong recording an overall inflow of $32 million. Countries like Switzerland saw about $24 million in inflow and Canada recorded only $12 million.

Unlike other countries which saw inflows into crypto funds, Germany on the other hand, experienced $23 million outflows. The German government has been gradually dumping its Bitcoin holdings in the market since June. As of July 8, the country still holds around $2.22 billion worth of BTC.

The post Crypto Funds See Massive $441M Inflows as Bulls Fight Back first appeared on Cointab.