Bitcoin's five-week run of capital inflows ended last week.
A shift in preference among crypto investors is evident, with Bitcoin-linked investment offerings losing their appeal.
As reported by James Butterfill, CoinShares’ Head of Research, Bitcoin (BTC) investment products experienced $13 million of outflows during the last week. This marks the first occasion of capital outflows from such investments since Blackrock filed for spot Bitcoin ETF.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Invest in Crypto: 6 Rewarding Strategies (Animated)
This trend appears to reverse the previous five weeks of capital inflows into the crypto asset. Additionally, short Bitcoin products experienced outflows totaling $5.5 million within the same week.
The pullback from Bitcoin contrasted sharply with the influx of investment into Ether (ETH) and XRP products. The combined inflow into these two digital assets totaled $9.2 million.
As Butterfill observed, the best-performing product in the past week were those linked to Ethereum, attracting $6.6 million. Meanwhile, XRP funds marked an inflow of $2.6 million. Other alternative crypto assets, notably Solana (SOL) and Polygon (MATIC), also recorded inflows amounting to $1.1 million and $0.7 million, respectively.
This recent pivot may be traced back to Ripple's partial victory in the legal proceedings with the US Securities and Exchange Commission. The court declared that XRP, when sold on public crypto exchanges, is not security.
Despite these shifts, Bitcoin still maintains its stronghold as the prime investment product in the digital asset space. So far in 2023, Bitcoin investment products have amassed $558 million in inflows and currently manage assets worth $25 billion.
At the time of writing, Bitcoin (BTC) retails for $29,155.20, recording a 2.23% decrease in the last 24 hours.
While Bitcoin continues to command a considerable portion of the crypto market, emerging patterns suggest a growing interest in alternative digital assets, particularly Ether and XRP.
