Why Bitcoin remains the most preferred digital asset

• BTC’s inflows year-to-date have exceeded $500 million.
• Leading alt ETH saw outflows despite the surge in the value of the coin. 

Inflows from digital asset investment products totaled $137 million last week, bringing the fourth consecutive week of inflows to $742 million, CoinShares found in a new report.

According to the digital assets investment firm, the total inflows recorded in the last month represented the largest run of inflows since the final quarter of 2021.

Source: CoinShares

Despite the year average trading volume for investment products being around $1.4 billion, CoinShares noted that last week’s trading volumes for these products surged to a total of $2.3 billion, surpassing the average by a considerable margin. 

CoinShares added,

“The volumes are currently making up a far greater proportion of total crypto volumes, comprising 11% last week compared to the 2% average.”  

Investor sentiment favors Bitcoin

For the fourth consecutive week, “investors maintain(ed) focus on Bitcoin” as the king coin logged inflows that totaled $140 million last week. This accounted for 99% of the total inflows recorded during that period. While BTC’s price trended downwards after trading briefly at a two-month high of $31,693 on 13 July, the king coin saw its inflows grow by 5% during that period. 

The additional $140 million in inflows brought the leading coin’s YTD net inflows to $571 million, with its assets under management (AuM) valued at $25 billion. This represented the third week of BTC logging a net inflow YTD, having been in a net outflow position of $171 million a month ago. 

On the other hand, short-bitcoin investment products saw an outflow of $3.2 million last week, representing 12 weeks of consecutive outflows. According to CoinShares:

“A combination of recent price appreciation and outflows have seen short bitcoin total assets under management fall from their April US$198m peak to just US$55m.”

However, despite the continued bearishness for short-bitcoin, it remained the second best-performing asset in terms of inflows YTD at $55 million, albeit in a steady decline, data from the report showed.

Source: CoinShares

ETH leads from the back

With an outflow of $2 million logged during the period under review, leading altcoin Ethereum [ETH] emerged as the “asset with the most outflows year-to-date.” 

Source: CoinShares

While the alt’s price saw some growth in the last week, the price growth failed to translate into any inflows for ETH, CoinShares found.

As for other altcoins, Solana [SOL], Polygon [MATIC], and Litecoin [LTC] saw minor inflows of “between US$0.5m, US$0.5m, and US$.3m, respectively.”