Bitcoin continues to lose momentum, Altcoin shows little improvement: The situation of capital flow last week

Crypto investment products operated by leading asset management firms such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares have continued to attract additional net cash flows of US$286 million globally over the past week, according to the latest report from CoinShares. Notably, Ethereum-based investment funds (ETH) continue to outperform Bitcoin (BTC)-based products.

This is the eighth consecutive week of growth for cryptocurrency investment funds, bringing the total inflow during this period to $11.3 billion. However, James Butterfill, Head of Research at CoinShares, warns that there are signs of a slowdown as investors become more cautious amid uncertainty regarding monetary policy.

"Investors are waiting for clearer signals from the Federal Reserve of America (Fed) regarding the inflation trend before making their next strategic decisions," he said.

Source: CoinShares## Ethereum attracts the strongest capital flow since the America 2024 election

Ethereum investment products recorded the second consecutive week of growth, with $296.4 million in net inflows. This is the sharpest increase since the US presidential election last November. To date, the seven-week growth streak has brought total cash inflows to $1.5 billion — or 10.5% of total assets under (AUM) in global Ethereum funds.

Notably, the majority of the capital inflow comes from the American market, with Ethereum spot ETFs accounting for $281.3 million in total. The continuous 15-day growth streak has now reached $837.5 million, reflecting a strong recovery in investor sentiment towards this digital asset.

Bitcoin continues to lose momentum, Altcoin is not very promising

In contrast to Ethereum, global Bitcoin investment products experienced net outflows for the second consecutive week, with $56.5 million withdrawn from funds. Even short-selling Bitcoin products have become less attractive, recording a net outflow of $4.1 million over the past week.

Other altcoin investment products have shown rather bleak performance. The investment fund in Sui recorded a modest net cash flow of 1.1 million dollars, while XRP funds continued their withdrawal trend for the third consecutive week, with a total of 6.6 million dollars withdrawn.

Capital flows are allocated across multiple regions, led by America

Net cash inflows were recorded on a global scale, with the United States leading the way with $175 million, followed by Germany (47.8 triệu), Switzerland (15.7 triệu), Canada (9.8 triệu) and Australia (6.5 triệu). In the opposite direction, the two markets recorded net cash inflows were Brazil (9.2 million la) and Hong Kong (14.6 million la), ending the series of cash flows in the previous record in this special administrative region.

Overall, in the context of the global market facing many variables from monetary policy, Ethereum investment products have emerged as a bright spot, reflecting a clear shift in the mindset and asset allocation strategies of institutional investors. Meanwhile, Bitcoin and some altcoins are still seeking to regain short-term growth momentum.

Emma