The United States has emerged as the dominant force in the global cryptocurrency investment market, with inflows surpassing $1 billion, largely driven by Bitcoin.
According to the latest market analysis from CoinShares, there has been a positive influx of capital into crypto investment products for the second consecutive week. Last week alone, these investments saw a total inflow of $932 million, with Bitcoin leading the way.
Interestingly, CoinShares attributes this surge in inflows to the “lower-than-expected” U.S. Consumer Price Index (CPI) report released last Wednesday. The report highlights that 89% of these inflows occurred in the last three trading days of the week, indicating a strong correlation between Bitcoin prices and interest rate expectations.
However, despite the increase in investment inflows, the trading volumes for the week fell short of previous records. Volumes stood at $10.5 billion, significantly lower than the $40 billion recorded in March.
In terms of regional breakdown, the U.S. ETF market took the lead with inflows exceeding $1 billion last week. Grayscale, which has faced $16.6 billion in outflows since the introduction of a Bitcoin ETF in January, experienced minor inflows of $18 million.
Switzerland and Germany also reported significant inflows after the U.S. market. Switzerland recorded a positive flow of $27 million, while Germany saw $4.2 million. On the other hand, Hong Kong and Canada experienced the most significant outflows, with negative flows of $83 million and $17 million, respectively.
Bitcoin was the top choice for individual crypto investments, attracting $942 million in inflows last week. Interestingly, only a small amount went into short Bitcoin positions, indicating an optimistic sentiment among investors. Other altcoins, such as Solana (SOL), Chainlink (LINK), and Cardano (ADA), also saw modest inflows in their respective investment products, with $4.9 million, $3.7 million, and $1.9 million, respectively.
In contrast, Ethereum-based investments saw outflows of over $23 million. CoinShares attributes this bearish outlook to the pending decision by the U.S. Securities and Exchange Commission (SEC) regarding Ethereum spot-based ETFs.
It’s important to note that this content is for informational purposes only and should not be considered financial advice. The views expressed in this article are solely the author’s opinion and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic is not liable for any financial losses incurred.
