Bitcoin Funds Received 98% of Weekly Digital Asset Funds Inflow: Report
Digital asset investment products saw their year-to-date (YTD) net inflows turn positive after registering $57 million in inflows last week, CoinShares reported. Bitcoin-related funds accounted for 98% of all inflows, with the world’s biggest crypto token surging above the $30,000 mark earlier on Tuesday.
Bitcoin Price Hits $30K for the First Time Since June 2022
Digital asset funds saw inflows of $57 million last week, pushing the year-to-date (YTD) fund flows back into positive territory, according to a report by CoinShares. Still, volumes remained low during the week at $970 million, as indicated by the global bitcoin exchange market, where volumes were just 25% of the YTD average of $18 billion.
Almost all fund flows from last week were concentrated on Bitcoin, which accounted for 98% of all inflows at $56 million. Meanwhile, short-bitcoin funds saw minor outflows of $0.6 million.
Earlier today, BTC exceeded the $30,000 threshold for the first time since June 2022 amid improving investor confidence as the impact of last month’s banking turmoil continued to fade. In addition, the recently released weaker-than-anticipated economic data raised hopes among investors that the Federal Reserve may be finally done hiking interest rates aggressively like in 2022.
Last week, a report by the Labor Department showed that job openings fell to the lowest mark in nearly two years, suggesting that the labor market – one of the major US inflation drivers – was losing momentum. This data weighed on the US dollar while boosting confidence among crypto and stock investors.
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Ethereum Inflows Stay Low Despite Crucial Network Upgrade
The CoinShares report that Ethereum-related funds saw minor inflows of just $0.6 million last week, despite the upcoming Shappella upgrade. On a YTD basis, net inflows for Ethereum funds remain negative at -$23 million.
The Shapella upgrade, a combination of two separate updates of Ethereum, including “Shanghai” and “Capella,” is considered one of the most important developments to the Ethereum ecosystem since the Merge.
The Shapella upgrade is set to bring a series of significant advantages for the world’s second-biggest blockchain, such as the ability to withdraw assets from the Beacon Chain. This feature will enable the unlocking of more than $30 billion worth of staked Ether (ETH) from the network, representing a notable amount of fresh liquidity.
Further, the upgrade will also reduce gas fees for developers, among other things. The fee cut will make it more cost-effective for developers to build and deploy smart contracts and decentralized applications (dApps) on the Ethereum blockchain.
Do you think Ethereum funds will also receive a boost after the Shapella upgrade takes place? Let us know in the comments below.