Key facts:
The US saw inflows totaling USD 416 million, Coinshares reported.
Bitcoin was the main inflow, with USD 436 million invested in it.
Last week marked a turning point for bitcoin (BTC) and cryptocurrency investment products, with a total of $430 million in capital inflows, CoinShares reports. This move ends two negative weeks that saw outflows of up to $1.2 billion.
The epicenter of this investment was In the United States, where inflows amounted to 416 million dollars, the preference for bitcoin stood out, attracting 436 million dollars last week, thus cutting an outflow trend that totaled 1.18 billion.
Most of the funds CoinShares reports are institutional funds, meaning they are designed and managed for investors with a more sophisticated investment profile and greater resources at their disposal.
This shift in investment flows reflects a notable reversal in the trend, where BTC short flows not only stopped, but reversed.
CoinShares notes that this reversal could be due to an improvement in market expectations, especially due to a potential 50 basis point interest rate cut in the United States.
Geographically, capital inflows were led by the United States, followed by Canada and Europe, with positive flows also in Switzerland and Germanyalbeit on a smaller scale. This global interest suggests growing acceptance and confidence in BTC as an asset class.
However, not all cryptocurrencies shared the same fate. Ether (ETH), from the Ethereum network, for example, remained in the red, reflecting a continuation of risk aversion towards this particular crypto asset. According to CoinShares, ETH reported a $19 million outflows last week.
This shift towards capital inflows into bitcoin investment products has a direct impact on the price of BTC. Investment in bitcoin and cryptocurrency products not only reflects investor interest and confidence, but can also influence price by increasing demand.
Historically, periods of significant inflows have preceded bullish moves in the price of bitcoin, although the cryptocurrency market is known for its volatility.
Despite this optimism, CoinShares does point out a setback. In its report, it indicates that trading volume in bitcoin and ether exchange-traded funds (ETFs) stood at $8 billion, down from the $14.2 billion previously seen, indicating that there is still caution in the market.
Recently, CriptoNoticias reported a $300 million outflow from bitcoin investment funds, which further contextualizes the relevance of this change. The $436 million investment in bitcoin this week not only counteracts these previous outflows, but also suggests a shift in the perception of value and stability of bitcoin as an asset.
This article was created using artificial intelligence and edited by a human on the editorial staff.