Bitcoin Investment Products Plummet as Blackrock’s Spot Bitcoin ETF Sparks Investor Interest
Bitcoin Investment Products Plummet as Blackrock’s Spot Bitcoin ETF Sparks Investor Interest
Bitcoin Investment Products Plunge as Altcoins Rise
Bitcoin-related investment products are plummeting
Bitcoin-related investment products are plummeting, as an influx of investors becomes visible for the first time since Blackrock’s introduction of the Spot Bitcoin ETF.
The outflow was revealed in a report by James Butterville, Head of Research at CoinShares. Bitcoin (BTC) investment products saw notable outflows of $13 million during the week ending July 21. The reversal came after five consecutive weeks of inflows.
Overall digital asset funds also saw weekly outflows of $6.5 million, after four weeks of large outflows totaling $742 million.
During the same period, Bitcoin short products also saw an outflow of $5.5 million.
The rise of altcoins led by Ether and XRP
In contrast, investment products related to ether (ETH) and XRP (XRP) recorded combined inflows of $9.2 million over the past week.
Ether emerged as the top performer, attracting $6.6 million in inflows, while XRP funds also attracted investor interest with an inflow of $2.6 million.
Other altcoins, such as Solana (SOL) and Polygon (MATIC), also saw some interest, tracking inflows of $1.1 million and $0.7 million, respectively.
The recent trend reversal for Bitcoin investors appears to be related to the lack of positive news after some major catalysts in recent weeks. Notably, global asset manager BlackRock placed an order for its much-anticipated exchange-traded spot BTC fund on June 15, which led to investments in BTC-focused funds increasing over the following month at a rate not seen since October 2021.
Other financial institutions that have filed for Bitcoin spot ETF applications with the SEC since mid-June include ARK Invest, Fidelity, Galaxy Digital, VanEck, Valkyrie Investments, NYDIG, SkyBridge, and WisdomTree.
Moreover, XRP’s partial court victory over the US Securities and Exchange Commission (SEC) on July 13 lifted the bitcoin price to a yearly high before dropping below $30,000. Nevertheless, this ruling has improved investor confidence in altcoins, as evidenced by positive money inflows in the past week.
Notably, Bitcoin continues to dominate the digital asset market, attracting $558 million in inflows in 2023. It has total assets under management of $25 billion, accounting for 67.4% of the total market share.
At the time of writing, BTC is trading hands at $29,186 and is down 2% over the past 24 hours.
