Cryptocurrency investment products close second consecutive week of inflows – BeinCrypto › Geeky News
Cryptocurrency investment products close second consecutive week of inflows – BeinCrypto › Geeky News
Last week, crypto investment products raised $15 million in capital, ending the second week in a row.
Even though this influx was minimal, total assets under management rebounded after falling to $36.2 billion, a level not seen in a year and a half, according to the latest report from CoinShares. Note, however, that last week’s inflow was significantly lower than the $64 million recorded the previous week.
Most of the investment has been made in North America. Indeed, the total inflow of U.S. cryptocurrency exchanges was $8.2 million, 76% of which were short positions. Canada, on the other hand, has raised $7.1 million in capital for crypto investment products. In Europe, Switzerland is the only country in which capital inflows have been registered (US$1.9 million).
Distribution of incoming streams As in the previous week, investment in short positions ($6.3 million) in bitcoin exceeded investment in long positions ($8.2 million). Last week, Bitcoin short sales hit an all-time high of $51 million. CoinShares notes, however, that “short inflows are starting to cool, while the recent rise in Bitcoin’s price has sent total assets under management down from $140 million to $127 million last week.”
On the other hand, Ethereum-based crypto investment products raised $7.6 million in capital, completing their third straight week of fund inflows. “After 11 consecutive weeks of outflows, this three-week rally shows little change in investor sentiment,” the report said.
When investor confidence was at its lowest, Ethereum’s annual outflow was $460 million. The report explains this improvement in sentiment as the long-awaited “Confluence” update is approaching, which will shift the Ethereum protocol from proof of work to proof of stake.
Cryptocurrency investment products with multiple assets have also undergone changes. While these products have only been released in small numbers so far, they posted a loss of $2.2 million last week.
On the other hand, altcoin-based investment products are virtually unchanged this month, with a small outflow of $300,000.
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