According to Coin Shares latest report, investment in crypto products reached a record inflow of $274 million last week as crypto investors sought to capitalize on the market-wide crash that resulted in the industry’s market cap falling below $1.5 trillion.
Investors swarm Bitcoin
According to the report, Bitcoin, which saw $299 million last week, was the primary beneficiary of the influx of funds. Despite the fact that the flagship digital asset’s value fell below $30k, “investors were flocking to the relative safety of the largest digital asset.”
Surprisingly, Terra’s UST recorded some inflows despite losing nearly all of its value and 99 percent of its assets under management. According to the report, the asset received $0.043 million in inflows.
Ethereum continues to see outflows
This year has seen continued outflows from the Ethereum network. The network recorded a $27 million outflow last week, bringing the total for the year to $236 million, or 2.6 percent of its assets under management (AuM).
The continuous outflows from Ethereum could be attributed to increased competition from other networks, which have become more appealing to investors.
While the reason for Ethereum outflows is currently unknown, it could be related to the cryptocurrency’s failure to deliver on its promise of transitioning to a proof-of-stake block chain.
Earlier this year, when it launched The Kiln testnet, which was supposed to precede The Merge, expectations were relatively high.
However, any hopes of that happening by the second quarter of the year were dashed when developers announced that it had been postponed to an unspecified date. In terms of ETFs, the Purpose ETF saw the most inflows ($284.8 million), while others such as CoinShares physical and ProShares also saw some inflows.
To read our blog on “Bitcoin could end a brief rebound, but it is highly unlikely that it will fall below $10,000,” click here
