Altcoins
Crypto Eyes Bounce? Bitcoin Inflows, Ethereum ETF Optimism
As the second quarter of 2024 comes to a close, CoinShares’ latest report reveals a mixed picture for digital asset investments. Despite seeing three consecutive weeks of cash inflows, total cash flow for digital asset investment products declined last week, closing at a negative $30 million.
Here’s everything you need to know.
Ethereum Faces Major Outflows
In a worrying trend, Ethereum investment products saw a significant cash outflow of around $60.7 million in the last week of June. This drop brings Ethereum’s assets under management (AUM) to a total of $14.35 billion. The persistent outflow has dampened the overall bullish outlook for the second-largest cryptocurrency by market capitalization.
Bitcoin and Altcoins Move
On a brighter note, Bitcoin Investment Products reported a cash inflow of around $10 million last week, bringing its AUM to a solid $67.57 billion. Additionally, Solana (SOL) and Litecoin (LTC) recorded modest inflows of $1.6 million and $1.4 million, respectively, signaling some positive momentum for these assets.
Geographic Insights: Where is the Money Flowing?
The United States led the charge in cash inflows, contributing about $43 million. Brazil and Australia followed with inflows of $7.6 million and $3 million respectively, demonstrating strong regional interest in digital assets.
Ethereum’s Bullish Future
Despite recent money outflows, the impending introduction of Ethereum spot ETFs in the US is expected to trigger a wave of bullish sentiment. With billions of dollars set to enter the Ethereum ecosystem in the coming months, the altcoin is well positioned for a potential parabolic phase.
The gradual global adoption of Web3 protocols and digital assets has strengthened the overall liquidity of cryptocurrencies. A rebound seems imminent. Historically, July has been a bullish month for the cryptocurrency sector, reinforcing the positive outlook for the coming weeks.
Will Ethereum Surmount Its Recent Outflows and Capitalize on the Coming ETF Hype? Exciting Times Ahead!