As Bitcoin fell to its lowest price since February, some institutions likely bought the dip, as digital asset investment products raked in $441 million last week, according to CoinShares data.
Tracking funds across multiple chains, CoinShares wrote that $398 million was targeted by investors at Bitcoin, the largest cryptocurrency by market cap. Meanwhile, funds for Solana and Ethereum saw $16 million and $10 million in allocations, respectively.
The Bitcoin buying comes despite a 9% dip in price over the past week to $56,000, spurred on by the German government’s selling of seized Bitcoin and looming repayments for Mt. Gox’s creditors. So far, Bitcoin-based funds have seen $15.8 billion in inflows this year.
“Recent price weakness prompted by [...] selling pressure [is] likely being seen as a buying opportunity,” CoinShares Head of Research James Butterfill wrote, adding that trading volumes for crypto-related funds remained relatively subdued at $7.9 billion.
Germany Speedruns Bitcoin Selloff, Moves $900 Million in Just 8 Hours
The German government has drastically increased the amount of seized Bitcoin that it is moving to exchanges and market makers, with more than $900 million worth transferred already on Monday in a span of just 8 hours, per on-chain data tracked by Arkham Intelligence. Germany has made a flurry of transfers in recent hours since Decrypt reported that the government had sent $28 million worth of Bitcoin to Coinbase and Bitstamp, split evenly, with another $28 million worth sent to an unidentified a...
This week's allocations follow a period of sustained outflows, where crypto funds bled over $1 billion over the three weeks prior.
From the perspective of inflows, Butterfill wrote that Solana solidified its stance as a top performer among altcoins. Its year-to-date inflows of $57 million have, so far, have outpaced combined allocations to XRP ($18 million), Cardano ($9 million), and Polkadot ($25 million).
A strong week of inflows for Solana- and Ethereum-based funds created unusual conditions, in which Bitcoin attracted just 90% of inflows as well, Butterfill wrote. Typically, Bitcoin accounts for a greater percentage of inflows.
“Because altcoins have been punished much harder [than Bitcoin], investors are taking a broader look at the crypto market,” Butterfill told Decrypt. “It’s that simple.”
Japan's Metaplanet Scoops More Bitcoin Amid Sluggish Economic Growth
Publicly traded Metaplanet Inc. has scooped up 42 additional Bitcoin valued at 400 million yen ($2.4 million), defying shifting crypto market sentiment amid additional selling pressure from major entities. The Tokyo-based firm's latest acquisition is part of a move to bolster its crypto, bringing the company’s total Bitcoin holdings to 203 BTC, according to a public disclosure statement on Sunday. Last month, the firm established a wholly-owned subsidiary, Metaplanet Capital Limited, as part of...
Still, Ethereum funds have seen outflows of $15 million so far this year—the only major cryptocurrency in such territory. However, with $10 million in weekly inflows, “Ethereum sentiment seems to have turned,” Butterfill wrote.
The shift coincides with anticipation toward the approval of regulatory filings that would allow spot Ethereum ETFs to trade. Bloomberg ETF analyst James Seyffart forecast recently that trading for the products could begin later this week.
“Should be an informative day and week on the [Ethereum] front,” Bloomberg ETF Eric Balchunas wrote Monday. “Stay tuned.”
Ethereum Will Soar Against Bitcoin After ETF Approvals: K33 Research
Ethereum is primed to mount a comeback against Bitcoin this month after underperforming its sibling cryptocurrency since the start of the year, according to K33 Research. On the one hand, the leading smart contract platform is poised to receive its first US-listed spot exchange-traded fund (ETF) in July, inviting a tidal wave of new institutional demand into ETH. Meanwhile, Bitcoin holders are awaiting a 141,686 BTC ($8.8 billion) distribution from defunct Bitcoin exchange Mt. Gox—a looming tsun...
For Ethereum, the listing of spot ETFs in the U.S. could deliver a shot in the arm to the second-largest cryptocurrency by market cap. While first-year inflows could catch $4 billion, per K33 Research, the asset has wavered recently, falling to its lowest price since mid-May.
Though Ethereum’s price was little changed Monday, the asset has given up gains it saw with the Securities and Exchange Commission’s abrupt approval of spot Ethereum ETFs. After climbing as high as $3,900 in May, Ethereum’s price has since drifted to under $3,000.
Edited by Andrew Hayward
