According to CoinShares' latest weekly report, there was a slight net inflow of $6 million into cryptocurrency investment products last week.
These data reflect the persistent uncertainty among investors, with significant sentiment differences across regions and various cryptocurrencies. Despite a relatively stable start to the week, broader macroeconomic data, especially from the U.S., has had a noticeable impact on capital flows.
U.S. cryptocurrency outflows lead this week, while European market sentiment remains optimistic.
CoinShares research director James Butterfill pointed out that the 'better-than-expected' U.S. retail sales data released midweek coincided with a large capital outflow. Therefore, despite early inflows, there was a retreat of $146 million midweek, erasing most of the previous gains.
Trends across regions are particularly complex. The U.S. led the week in capital outflows, with registered investment products experiencing a net outflow of $71 million.
In contrast, the European market has maintained a more optimistic outlook. Switzerland saw inflows of $43.7 million, followed by Germany with inflows of $22.3 million, and Canada with an increase of $9.4 million, highlighting regional differences in cryptocurrency investment behavior.
Cryptocurrency asset fund flows (by region). | Source: CoinShares
Bitcoin remains the focus of capital movements this week. The weekly capital flows reflect divergent investor views, ultimately leading to a slight outflow totaling $6 million. Bitcoin short positions have also continued to decrease, with an outflow of $1.2 million last week.
This marks the seventh consecutive week of capital outflows from short positions, with a total of $36 million having flowed out from these products. According to CoinShares data, this portion of funds currently accounts for about 40% of the total assets under management (AUM) of Bitcoin short investment instruments.
Ethereum continues to face pressure while XRP maintains an upward trend.
Ethereum continues to experience capital outflows, extending an eight-week trend. Last week, the asset saw outflows of $26.7 million, bringing the total outflow of cryptocurrencies since the recent consecutive outflows to $772 million.
Despite ongoing pressure, Ethereum still holds the position of the second highest capital flow year-to-date (YTD), with a net inflow of $215 million so far in 2024. This indicates that although recent sentiment has cooled, long-term interest remains relatively strong.
Cryptocurrency asset fund flows. | Source: CoinShares
In contrast, XRP's weekly net inflow reached $37.7 million. This recent performance ranks its year-to-date capital inflows third, only behind Ethereum, with a total net inflow of $214 million since the beginning of the year.
In the face of broader market uncertainty, the resilience of cryptocurrency has been reflected in recent fund behaviors and continues to attract investors looking to allocate capital to diversified cryptocurrency portfolios.
