According to crypto asset management CoinShares, there was a $13 million outflow from bitcoin (BTC) investment products last week, breaking the trend of weeks that saw significant inflows. Instead, investors preferred funds that focused on lesser cryptocurrencies like ether (ETH) and Ripple’s XRP.The entire value of digital asset funds decreased by $6.5 million each week after increasing by $742 million over the preceding four weeks.
After some significant catalysts in recent weeks, BTC investors appear to have run out of good news to bid on, which is when the trend reversed.On June 15, the long-desired slot for a BTC exchange traded fund was filed for by the world’s largest asset management company BlackRock.Investors poured money into BTC-focused investment funds over the following month at the quickest rate since October 2021 as a result of the BlackRock revelation.BTC’s price reached a new yearly high earlier this month when XRP partially defeated the U.S. Securities and Exchange Commission (SEC) in court, but it immediately dropped below $30,000.However, the decision increased investor confidence in altcoins, which are alternative cryptocurrencies to bitcoin, as seen by positive capital flows throughout last week.
Among all cryptocurrencies, ETH-focused investment products saw the highest inflows, reaching $6.6 million.According to James Butterfill, head of research at CoinShares, the surge indicates that “sentiment, which has been poor this year, is beginning to turn around” for the second-largest crypto asset.Over the past 11 weeks, XRP funds received inflows of $2.6 million, or $6.8 million, or 8% of all inflows into assets under management.This suggests that investors are growing more optimistic about the future of XRP, according to Butterfill.Smaller altcoin holding funds saw positive flows of $1.1 million, $0.7 million, and $0.7 million, respectively, for Solana’s SOL, UniSwap’s UNI, and Polygon’s MATIC.