- July 19, 2023
- Posted by: [email protected]
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Increased inflows into crypto investment funds are being driven primarily by Bitcoin, which accounted for 99% of all inflows. Meanwhile, Ethereum experienced outflows amounting to $2 million, maintaining its status as the asset with the highest outflows so far this year.
For the fourth consecutive week, digital asset inflows saw positive movement, reaching $137 million. This brings the total inflows over the four-week period to $742 million, which effectively offsets the nine weeks’ worth of outflows that occurred prior to this streak. It also marks the largest run of inflows since the fourth quarter of 2021, indicating a significant shift in market sentiment.
Several factors contribute to this ongoing positive momentum. Notably, a recent legal decision in the Securities and Exchange Commission v. Ripple lawsuit has been viewed as a partial victory for the crypto community. This development caused the XRP token to surge, and the overall market responded with a week of heightened activity. The week received a “Fear and Greed Index” rating of 56, indicating increased positive sentiment among investors. However, as of July 17, the index has returned to a “neutral” rating, despite the four weeks of positive inflows into crypto investment products.
Bitcoin continues to dominate the market, attracting the majority of fund traffic. It accounted for 99% of all inflows, amounting to a weekly total of $140 million. However, other cryptocurrencies experienced outflows, with Ether alone seeing an additional $2 million in outflows, solidifying its position as the asset with the highest total outflows this year.
Although Bitcoin’s market dominance remains intact, its overall market capitalization has seen minor fluctuations in recent weeks, reflecting relatively subdued price action for the largest cryptocurrency. As of July 17, Bitcoin’s market dominance rate stands at 50.18%, down nearly a percentage point from the previous week.
With inflows of $109 million and $28 million, respectively, the United States and Canada emerged as the primary hubs of digital asset activity in terms of regional dispersion. Most other regions had outflows, with the exception of Switzerland, which surpassed the European market with inflows of $3.3 million. This increases Switzerland’s monthly total of inflows to $12.2 million, indicating the country’s rising influence in the crypto space.
