Asset manager and investment firm CoinShares has attributed the recent surge in investment crypto products globally to two key factors: the German government’s ongoing Bitcoin sales and lower-than-expected Consumer Price Index (CPI) data in the United States.
According to CoinShares’s latest weekly report, released today, July 15, 2024, the global crypto investment products market reported a record-breaking $1.44 billion net inflows last week. This figure reportedly brings the year-to-date net inflows to $17.8 billion, surpassing 2021’s total of $10.6 billion.
The asset manager claimed that the German government’s recent Bitcoin liquidation has created unique market dynamics. In June 2024, the government began gradually selling off over 50,000 BTC it seized from the illicit movie piracy site Movie2K, which has significantly influenced market sentiment and the token’s price. Notably, recent analytics data revealed that despite the sales, the German government-linked wallet still holds $2.19 billion worth of Bitcoin.
The report also claimed that, on the other hand, the lower-than-anticipated CPI points in the U.S. have bolstered investor confidence in cryptocurrencies, who now potentially view them as a hedge against inflation or an attractive alternative in a low-interest-rate environment.
According to the report, bitcoin-based exchange-traded funds (ETFs) dominated the positive flows, accounting for $1.35 billion in net inflows – the fifth largest weekly inflow on record for Bitcoin products. Also, short-Bitcoin products experienced their most substantial weekly net outflows since April, totalling $8.6 million.
RELATED:
Other cryptocurrencies also benefited from this positive trend, with Solana, Avalanche, and Chainlink attracting inflows of $4.4 million, $2 million, and $1.3 million, respectively.
Despite the substantial inflows, trading volumes across crypto exchange-traded products (ETPs) remained relatively subdued at $8.9 billion, significantly below the $21 billion weekly average since their inception. According to the report, this discrepancy hints at a seasonal pattern of reduced trading activity during the summer months.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
