financemagnates.com
The cryptocurrency market saw a correction on Monday after the total market cap of digital currencies dropped by more than $100 billion. Since May 2021, the overall crypto market sentiment has remained negative.
The latest negative trend is having a major impact on the weekly inflows in cryptocurrency investment products. According to the recent digital asset weekly fund flows report published by CoinShares, Bitcoin investment products saw outflows worth $10.4 million last week.
However, Ethereum, the world’s second-largest cryptocurrency, attracted substantial inflows during the last seven days. ETH investment products saw inflows worth $11.7 million in the last week. During the first half of 2021, Ethereum investment products attracted approximately $1 billion worth of inflows.
“After a few weeks of inflows into Bitcoin (the world’s largest cryptocurrency), we have now seen outflows for the last two weeks, with outflows last week totaling US$10.4m. These outflows are minimal relative to the significant outflows witnessed in May and June this year. Furthermore, we believe the timing of some investment product launches, where investors gained market access for the first time, has led to recent profit-taking rounds, this is evident in the mixed nature of inflows and outflows across different providers,” CoinShares mentioned in the report.
During the last week, net inflows reached $2.9 million. In the second week of July 2021, cryptocurrency investment products saw outflows worth nearly $4 million.
Quiet Week for Cryptocurrency Assets
Apart from the recent performance of Bitcoin and Ethereum, other cryptocurrency assets including Polkadot, Cardano, Stellar, and XRP attracted minor inflows during the last seven days. “For the rest of the altcoins it was a very quiet week, Ripple, Polkadot, Multi-asset, Cardano, and Stellar all had inflows but were less than US$0.5m each. Volumes in Bitcoin fell to just 38% of the year-to-date average, totaling US$3.9bn per day last week. We do not believe this represents something ominous in the market as we saw similar seasonal dips in volumes during the summer months in recent years,” CoinShares added.