Weekly entry for crypto investment products suggests buy signal on the dip: CoinShares – DiarioBitcoin
By Hannah Perez
Inflows into US spot Bitcoin ETFs and other crypto investment products in global markets could be a sign of buying interest amid the price correction, CoinShares believes.
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- Cryptocurrency investment products closed the week with an inflow of USD $441 million
- Inflows into ETFs and other crypto vehicles come amid sharp price correction
- They could suggest that investors see Bitcoin’s fall as a buying opportunity
- Bitcoin fell back below $57,000 on Monday amid widespread volatility
Cryptocurrency investment products globally had their best week in a month despite a downward price correction in the digital asset market, which is possibly a sign of buying interest.
Analysts of CoinShares They said on Monday that investment products in digital assets recorded inflows totaling USD $441 million last weekbreaking a streak of three weeks of consecutive releases.
The report takes into account exchange-traded funds (ETFs) of Bitcoin American cash, managed by managers such as BlackRock, Fidelity, Grayscale, Ark Invest and others, as well as ETFs of Bitcoin and Ethereum in Hong Kong, Canada and other investment vehicles based in altcoins offered on the European market.
The products last saw net inflows in the week ending June 7, when investors added more than $2 billion, as recalled CoinDeskwhich cited that report.
The entries might come as a surprise to some as they came amid a sharp price pullback in the cryptocurrency market that saw Bitcoin falling to its lowest level since February, below $55,000. The broader market decline has been a product of a number of factors, including selling pressure caused by the defunct cryptocurrency exchange’s payment distribution Mt. Gox and the whale movements of the German authorities.
However, analysts believe that the inflows into the products could be a sign of buying interest from investors, who may be viewing falling prices as a buying opportunity.
“The recent price weakness caused by Mt Gox and selling pressure from the German government is likely seen as a buying opportunity”they wrote in the report.
Beyond Bitcoininterest in the altcoins
The funds of Bitcoin attracted the majority of revenue, taking in $398 million, or 90% of total admissions, he said. CoinSharesWhile this is a high figure, it is lower than the usual 99% dominance that the flagship cryptocurrency usually enjoys for this class of products, suggesting a growing interest in other cryptocurrencies.
Solarium (SOL) stood out among the altcoinswith SOL-linked products that recorded revenues of USD $16 million.
Regionally, the largest inflows were seen in products offered in the United States, with $384 million of inflows. While other markets such as Hong Kong, Switzerland and Canada also saw modest inflows, Germany was an outlier, seeing $23 million in outflows during the week, analysts noted.
CoinShares He also said that cryptocurrency exchange-traded products (ETPs) remained relatively low with an inflow of USD $7.9 billion during the week, “reflecting the typical seasonal pattern of lower volumes in the summer months.” This comment seems to be in line with those of other analysts, who have estimated that the price drop for Bitcoin and the rest of the market could be due —partly— to the summer holidays in the USA and Europe.
While this trend for cryptocurrency funds could reflect a buying opportunity sentiment among investors, this was not replicated for company stocks. Blockchainwhich recorded outflows worth USD $8 million, bringing their total so far this year to USD $556 million, according to experts.
Bearish action in the cryptocurrency market
Bitcoin (BTC) is trading around $55,600 at press time, down 2.24% on the day. The leading cryptocurrency had momentarily recovered $57,000 in the morning hours but failed to hold the mark amid moves of over 3,000 BTC from the German government earlier in the day.
In addition to the above factors, uncertainty over a much-anticipated upcoming US interest rate hike could also be adding downward pressure to Bitcoin and the broader digital asset market.
Ethereum (ETH) also saw high volatility on Monday, falling from $3,000 after having retaken that key mark earlier in the day. Market participants are awaiting the official arrival of the first Ethereum ETFs. Ether to the US market, a milestone that is expected to occur this July.
Article by Hannah Estefanía Pérez / Bitcoin Diary
Picture of Unsplash
WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be appropriate for retail investors, as the total amount invested could be lost. Check the laws of your country before investing.
